[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
Notification
New Delhi, the 7th August, 2015
S.O. 2155(E) - In exercise of the powers conferred by section 285BA read with
section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Government with respect
to registration of persons, due diligence and maintenance of information, and the Board for
matters relating to statement of reportable accounts, hereby make the following rules further
to amend the Income-tax Rules, 1962, namely:1. (1) These rules may be called the Income–tax (11th Amendment) Rules, 2015.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the said rules), after rule 114E,
the following rules shall be inserted, namely:‘114F Definitions.- For the purpose of this rule and rules 114G and 114H,(1) “financial account” means an account (other than an excluded account) maintained by
a financial institution, and includes(i) a depository account;
(ii) a custodial account;
(iii) in the case of an investment entity, any equity or debt interest in the financial
institution.
Explanation.- For the purposes of this sub-clause “financial account” shall not
include any equity interest or debt interest in an entity that is an investment
entity solely because it,(a) renders investment advice to, and acts on behalf of; or
(b) manages portfolios for, and acts on behalf of,
a customer for the purpose of investing, managing, or administering financial
assets deposited in the name of the customer with a financial institution that is
not a non-participating financial institution other than such entity;
(iv) in the case of a financial institution not described in sub-clause (iii), any equity
or debt interest in the financial institution, if the class of interests was
established with a purpose of avoiding reporting in accordance with rule 114G
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and, in case of a U.S. reportable account, if the value of the debt or equity
interest is determined, directly or indirectly, primarily by reference to assets that
give rise to U.S. source withholdable payments; and
(v) any cash value insurance contract and any annuity contract issued or maintained
by a financial institution, other than a non-investment-linked, non-transferable
immediate life annuity that is issued to an individual and monetises a pension or
disability benefit provided under an account that is an excluded account.
Explanation.- For the purposes of this clause,(a) “depository account” includes any commercial, checking, savings, time, or thrift
account, or an account that is evidenced by a certificate of deposit, thrift
certificate, investment certificate, certificate of indebtedness, or other similar
instrument maintained by a financial institution in the ordinary course of a
banking or similar business and also an amount held by an insurance company
pursuant to a guaranteed investment contract or similar agreement to pay or
credit interest thereon;
(b) “custodial account” means an account (other than an insurance contract or
annuity contract) for the benefit of another person that holds one or more
financial assets;
(c) “equity interest” in a financial institution, being(i) a partnership firm, means either a capital or profits interest in the partnership
firm;
(ii) a trust, means any interest held by any person treated as a settlor or
beneficiary of all or a portion of the trust, or any other natural person
exercising ultimate effective control over the trust;
Explanation.- A person will be treated as a beneficiary of a trust if he has the
right to receive directly or indirectly a mandatory distribution or may
receive, directly or indirectly, a discretionary distribution from the trust.
(d) “insurance contract” means a contract (other than an annuity contract) under
which the issuer agrees to pay an amount upon the occurrence of a specified
contingency involving mortality, morbidity, accident, liability, or property risk;
(e) “annuity contract” means a contract under which the issuer agrees to make
payments for a period of time determined in whole or in part by reference to the
life expectancy of one or more individuals;
(f) “cash value insurance contract” means an insurance contract (other than an
indemnity reinsurance contract between two insurance companies) that has a
cash value and in case of a U.S. reportable account such value is greater than an
amount equivalent to fifty thousand U.S. dollars.
Explanation.- For the purposes of this clause, a single premium life insurance
contract which does not permit an amount to be paid on surrender or termination
of the contract and which does not allow amounts to be borrowed under or with
regard to the contract, shall not constitute a cash value insurance contract;
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(g) “cash value” means the greater of(i) the amount that the policyholder is entitled to receive upon surrender or
termination of the contract (determined without reduction for any surrender
charge or policy loan); and
(ii) the amount the policyholder can borrow under or with regard to the
contract,
but does not include an amount payable under an insurance contract,(A) solely by reason of the death of an individual insured under a life insurance
contract including a refund of a previously paid premium provided such
refund is a limited risk refund; or
(B) as a personal injury or sickness benefit or other benefit providing
indemnification of an economic loss incurred upon the occurrence of the
event insured against; or
(C) as a refund of a previously paid premium (less cost of insurance charges
whether or not actually imposed) under an insurance contract (other than a
life insurance contract or an annuity contract) due to cancellation or
termination of the contract, decrease in risk exposure during the effective
period of the contract, or arising from the correction of a posting or similar
error with regard to the premium for the contract; or
(D) as a policyholder dividend (other than a termination dividend) provided that
the dividend relates to an insurance contract under which the only benefits
payable are described in sub-clause (ii); or
(E) as a return of an advance premium or premium deposit for an insurance
contract for which the premium is payable at least annually if the amount of
the advance premium or premium deposit does not exceed the next annual
premium which will be payable under the contract:
Provided that the provisions contained in sub-clause (A) and sub-clause (E)
shall not apply in case of a U.S. reportable account;
(h) “excluded account” means,(i) a retirement account or pension account that satisfies the following
requirements, namely:(A) the account is subject to regulation as a personal retirement account or
is part of a registered or regulated retirement or pension plan for the
provision of retirement or pension benefits (including disability or
death benefits);
(B) the account is tax-favoured where contributions to the account that
would otherwise be subject to tax are deductible or excluded from the
gross total income of the account holder or taxed at a reduced rate, or
taxation of investment income from the account is deferred or taxed at
a reduced rate;
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(C) information reporting is required to the income-tax authorities with
respect to the account;
(D) withdrawals are conditioned on reaching a specified retirement age,
disability, or death, or penalties apply to withdrawals made before such
specified events; and
(E) either annual contributions are limited to an amount equivalent to fifty
thousand U.S. dollars or less, or there is maximum lifetime
contribution limit to the account of an amount equivalent to one
million U.S. dollars or less, in each case applying the rules specified in
clause (c) of sub-rule (7) of rule 114H for account aggregation and
currency translation.
Explanation.- A financial account that otherwise satisfies the
requirements of item (E) will not fail to satisfy such requirements
solely because such financial account may receive assets or funds
transferred from one or more financial accounts that meet the
requirements of item (A) or (B) or from one or more retirement or
pension funds that meets with the requirements of clauses (e), (f) or (g)
of Explanation to clause (1);
(ii) an account that satisfies the following requirements, namely:(A) the account is subject to regulation as a savings vehicle for purposes
other than for retirement, or the account (other than U.S. reportable
account) is subject to regulation as an investment vehicle for purposes
other than for retirement and is regularly traded on an established
securities market;
(B) the account is tax-favoured where contributions to the account that will
otherwise be subject to tax are deductible or excluded from the total
income of the account holder or taxed at a reduced rate, or taxation of
investment income from the account is deferred or taxed at a reduced
rate;
(C) withdrawals are conditioned on meeting specific criteria related to the
purpose of the investment or savings account (for example, the
provision of educational or medical benefits), or penalties apply to
withdrawals made before such criteria are met; and
(D) annual contributions are limited to an amount equivalent to fifty
thousand U.S. dollars or less, applying the rules specified in clause (c)
of sub-rule (7) of rule 114H for account aggregation and currency
translation.
Explanation.- A financial account that otherwise satisfies the
requirements of item (D) will not fail to satisfy such requirements
solely because such financial account may receive assets or funds
transferred from one or more financial accounts that meet the
requirements of item (A) or (B) or from one or more retirement or
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pension funds that meets the requirements of clauses (e), (f) or (g) of
Explanation to clause (1) of this rule;
(iii) an account established under the Senior Citizens Savings Scheme Rules,
2004 made under the Government Savings Banks Act, 1873 (5 of 1873).
(iv) a life insurance contract with a coverage period that will end before the
insured individual attains age of ninety years, provided that the contract
satisfies the following requirements, namely:(A) periodic premiums, which do not decrease over time, are payable at
least annually during the period the contract is in existence or until the
insured attains age of ninety years, whichever is shorter;
(B) the contract has no contract value that any person can access (by
withdrawal, loan, or otherwise) without terminating the contract;
(C) the amount (other than a death benefit) payable upon cancellation or
termination of the contract cannot exceed the aggregate premiums paid
for the contract, less the sum of mortality, morbidity, and expense
charges (whether or not actually imposed) for the period or periods of
the contract’s existence and any amounts paid prior to the cancellation
or termination of the contract; and
(D) the contract is not held by a transferee for value;
(v) an account that is held solely by an estate if the documentation for such
account includes a copy of the deceased’s will or death certificate;
(vi) an account established in connection with any of the following:
(A) a court order or judgment;
(B) a sale, exchange, or lease of real or personal property, provided that the
account satisfies the following requirements, namely:(a) the account is funded solely with a down payment, earnest money,
deposit in an amount appropriate to secure an obligation directly
related to the transaction, or a similar payment, or is funded with a
financial asset that is deposited in the account in connection with
the sale, exchange, or lease of the property;
(b) the account is established and used solely to secure the obligation
of the purchaser to pay the purchase price for the property, the
seller to pay any contingent liability, or the lessor or lessee to pay
for any damages relating to the leased property as agreed under
the lease;
(c) the assets of the account, including the income earned thereon,
will be paid or otherwise distributed for the benefit of the
purchaser, seller, lessor, or lessee (including to satisfy such
person’s obligation) when the property is sold, exchanged, or
surrendered, or the lease terminates;
(d) the account is not a margin or similar account established in
connection with a sale or exchange of a financial asset; and
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(e) the account is not associated with a depository account referred to
in sub-clause (vii);
(C) an obligation of a financial institution servicing a loan secured by real
property to set aside a portion of a payment solely to facilitate the
payment of taxes or insurance related to the real property at a later
time;
(D) an obligation of a financial institution solely to facilitate the payment
of taxes at a later time;
(vii) in the case of an account other than a U.S. reportable account, a depository
account that satisfies the following requirements, namely:(A) the account exists solely because a customer makes a payment in
excess of a balance due with respect to a credit card or other revolving
credit facility and the overpayment is not immediately returned to the
customer; and
(B) beginning on or before the 31st December, 2015, the financial
institution implements its policies and procedures either to prevent a
customer from making an overpayment in excess of an amount
equivalent to fifty thousand U.S. dollars, or to ensure that any customer
overpayment in excess of an amount equivalent to fifty thousand U.S.
dollars is refunded to the customer within sixty days, in each case
applying the rules specified in clause (c) of sub-rule (7) of rule 114H
for account aggregation and currency translation and for this purpose, a
customer overpayment does not refer to credit balances to the extent of
disputed charges but includes credit balances resulting from
merchandise returns;
(2) “financial asset” includes a security (for example, a share of stock in a corporation;
partnership or beneficial ownership interest in a widely held or publicly traded
partnership or trust; note, bond, debenture, or other evidence of indebtedness),
partnership interest, commodity, swap (for example, interest rate swaps, currency swaps,
basis swaps, interest rate caps, interest rate floors, commodity swaps, equity swaps,
equity index swaps, and similar agreements), insurance contract or annuity contract, or
any interest (including a futures or forward contract or option) in a security, partnership
interest, commodity, swap, insurance contract, or annuity contract:
Provided that “financial asset” shall not include a non-debt and direct interest in an
immovable property;
(3) “financial institution” means a custodial institution, a depository institution, an
investment entity, or a specified insurance company.
Explanation.- For the purposes of this clause,(a) “custodial institution” means any entity that holds, as a substantial portion of its
business, financial assets for the account of others and where its income
attributable to the holding of financial assets and related financial services equals
or exceeds twenty per cent. of its gross income during the three financial years
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preceding the year in which determination is made or the period during which
the entity has been in existence, whichever is less;
(b) “depository institution” means any entity that accepts deposits in the ordinary
course of a banking or similar business;
(c) “investment entity” means any entity,(A) that primarily conducts as a business one or more of the following activities
or operations for or on behalf of a customer, namely:(i) trading in money market instruments (cheques, bills, certificates of
deposit, derivatives, etc.); foreign exchange; exchange, interest rate
and index instruments; transferable securities; or commodity futures
trading; or
(ii) individual and collective portfolio management; or
(iii) otherwise investing, administering, or managing financial assets or
money on behalf of other persons; or
(B) the gross income of which is primarily attributable to investing, reinvesting,
or trading in financial assets, if the entity is managed by another entity that is a
depository institution, a custodial institution, a specified insurance company, or
an investment entity mentioned in sub-clause (A) of this clause.
Explanation 1.- An entity is treated as primarily conducting as a business one or
more of the activities described in sub-clause (A) of this clause, or an entity’s
gross income is primarily attributable to investing, reinvesting, or trading in
financial assets for purposes of sub-clause (B) of this clause, if the entity’s gross
income attributable to the relevant activities equals or exceeds fifty per cent. of
the gross income of the entity during the shorter of the three-year period ending
on 31st March of the year preceding the year in which the determination is
made or the period during which the entity has been in existence.
Explanation 2.- The term “investment entity” shall not include an entity that is
an active non-financial entity merely because it meets any of the criteria
provided in sub-clauses (iv), (v), (vi) or (vii) of clause (A) of Explanation to
clause (6) of this rule;
(d) “specified insurance company” means any entity that is an insurance company
(or the holding company of an insurance company) that issues, or is obligated to
make payments with respect to, a Cash Value Insurance Contract or an Annuity
Contract;
(4) “non-participating financial institution” means a financial institution defined in
clause (r) of Article 1 of the agreement between the Government of the Republic of India
and the Government of the United States of America to improve international tax
compliance and to implement Foreign Account Tax Compliance Act of the United States
of America (herein after referred to as the FATCA agreement), but does not include,(a) an Indian financial institution; or
(b) other jurisdiction, being a jurisdiction that has in effect an agreement with the
United States of America to facilitate the implementation of Foreign Account
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Tax Compliance Act (herein after referred to as other partner jurisdiction),
financial institution,
other than a financial institution treated as a non-participating financial institution
pursuant to sub-paragraph (b) of paragraph 2 of Article 5 of the FATCA agreement
or the corresponding provision in an agreement between the United States of
America and other partner jurisdiction;
(5) “non-reporting financial institution” means any financial institution that is,(a) a Governmental entity, International Organisation or Central Bank, other than
with respect to a payment that is derived from an obligation held in connection
with a commercial financial activity of a type engaged in by a specified
insurance company, custodial institution, or depository institution;
(b) a Treaty Qualified Retirement Fund; a Broad Participation Retirement Fund; a
Narrow Participation Retirement Fund; or a Pension Fund of a Governmental
entity, International Organization or Central Bank;
(c) a non-public fund of the armed forces, Employees’ State Insurance Fund, a
gratuity fund or a provident fund;
(d) an entity that is an Indian financial institution only because it is an investment
entity, provided that each direct holder of an equity interest in the entity is a
financial institution referred to in sub-clauses (a) to (c), and each direct holder of
a debt interest in such entity is either a depository institution (with respect to a
loan made to such entity) or a financial institution referred to in sub-clauses (a)
to (c);
(e) a qualified credit card issuer;
(f) an investment entity established in India that is a financial institution only
because it,(I) renders investment advice to, and acts on behalf of; or
(II) manages portfolios for, and acts on behalf of; or
(III) executes trades on behalf of,
a customer for the purposes of investing, managing, or administering funds or
securities deposited in the name of the customer with a financial institution other
than a non-participating financial institution;
(g) an exempt collective investment vehicle;
(h) a trust established under any law for the time being in force to the extent that the
trustee of the trust is a reporting financial institution and reports all information
required to be reported under rule 114G with respect to all reportable accounts
of the trust;
(i) a financial institution with a local client base;
(j) a local bank;
(k) a financial institution with only low-value accounts;
(l) sponsored investment entity and controlled foreign corporation, in case of any
U.S. reportable account; or
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(m) sponsored closely held investment vehicle, in case of any U.S. reportable
account.
Explanation.- For the purpose of this clause,(A) “Governmental entity” means the Government of a country or territory, any
political subdivision of a country or territory (including a state, province,
county, or municipality), or any wholly owned agency or instrumentality or
controlled entity of a country or territory or of any one or more of the foregoing
(where each is also a “Governmental entity”) and includes the integral parts,
controlled entities, and political subdivisions of such country or territory.
Explanation.- For the purpose of clause (A),(i) an “integral part” of a country or territory means any person, organisation,
agency, bureau, fund, instrumentality, or other body, by whatever name
called, that constitutes a governing authority of a country or territory and
the net earnings of the governing authority must be credited to its own
account or to other accounts of the country or territory, with no portion
inuring to the benefit of any private person:
Provided that an integral part does not include any individual who is a
sovereign, official, or administrator acting in a private or personal capacity:
Provided further that the income does not inure to the benefit of private
persons if such persons are the intended beneficiaries of a Governmental
programme, and the programme activities are performed for the general
public with respect to the common welfare or relate to the administration of
a Department of Government:
Provided also that income is considered to inure to the benefit of private
persons if the income is derived from the Governmental entity engaged in a
commercial business, such as a commercial banking business, which
provides financial services to private persons;
(ii) a controlled entity means an entity that is separate in form from the country
or territory or that otherwise constitutes a separate juridical entity:
Provided that(a) the entity is wholly owned and controlled by one or more Governmental
entities directly or through one or more controlled entities;
(b) the entity’s net earnings are credited to its own account or to the
accounts of one or more Governmental entities, with no portion of its
income inuring to the benefit of any private person; and
(c) the entity’s assets vest in one or more Governmental entities upon
dissolution:
Provided further that the income does not inure to the benefit of private
persons if such persons are the intended beneficiaries of a Governmental
programme, and the programme activities are performed for the general
public with respect to the common welfare or relate to the administration of
a Department of Government:
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(B)
(C)
(D)
(E)
Provided also that income is considered to inure to the benefit of private
persons if the income is derived from Governmental entity engaged in a
commercial business, such as a commercial banking business, which
provides financial services to private persons;
“International Organisation” means any international organization or wholly
owned agency or instrumentality thereof including any inter-Governmental
organisation,(a) that is comprised primarily of Governments;
(b) that has in effect a headquarters or substantially similar agreement with
India; and
(c) the income of which does not inure to the benefit of private persons;
“Central Bank” means a bank that is by law or Government sanction the
principal authority, other than the Government of the country or territory itself,
issuing instruments intended to circulate as currency including an
instrumentality that is separate from the Government of the country or territory,
whether or not owned in whole or in part by that country or territory;
“Treaty Qualified Retirement Fund” means a fund established in India, provided
that the fund is entitled to benefits under an agreement between India and the
Government of any country or territory outside India on income that it derives
from sources within such country or territory outside India (or would be entitled
to such benefits if it derived any such income) as a resident of India that satisfies
any applicable limitation on benefits requirement, and is operated principally to
administer or provide pension or retirement benefits;
“Broad Participation Retirement Fund” means a fund established to provide
retirement, disability, or death benefits, or any combination thereof, to
beneficiaries who are current or former employees (or persons nominated by
such employees) of one or more employers in consideration for services
rendered:
Provided that the fund,(i) does not have any beneficiary with a right to more than five per cent. of the
fund’s assets;
(ii) is subject to Government regulation and provides information reporting to
the income-tax authorities; and
(iii) satisfies at least one of the following requirements, namely:(a) the fund is generally exempt from tax on investment income, or
taxation of such income is deferred or taxed at a reduced rate, due to its
status as a retirement or pension plan;
(b) the fund receives at least fifty per cent of its total contributions [other
than transfer of assets from other plans referred to in clauses (D) to (G)
or from retirement and pension accounts referred to in sub-clause (i) of
clause (h) of Explanation to clause (1)] from the sponsoring
employers;
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(F)
(G)
(H)
(I)
(c) distributions or withdrawals from the fund are allowed only in the
event of retirement, disability or death [except rollover distributions to
other retirement funds referred to in clauses (E) to (G), or retirement
and pension accounts referred to in sub-clause (i) of clause (h) of
Explanation to clause (1)], or penalties which apply to distributions or
withdrawals made before such events; or
(d) contributions (other than permitted make-up contributions) by
employees to the fund are limited by reference to earned income of the
employee or may not exceed an amount equivalent to fifty thousand
U.S. dollars annually, applying the procedures set forth in clause (c) of
sub-rule (7) of rule 114H for account aggregation and currency
translation;
“Narrow Participation Retirement Fund” means a fund established to provide
retirement, disability, or death benefits to beneficiaries who are current or
former employees (or persons nominated by such employees) of one or more
employers in consideration for services rendered:
Provided that,(i)
the fund has less than fifty participants;
(ii) the fund is sponsored by one or more employers who are not investment
entities or passive non-financial entities;
(iii) the employee and employer contributions to the fund [other than transfer
of assets from retirement and pension accounts referred to in sub-clause
(i) of clause (h) of Explanation to clause (1)] are limited by reference to
earned income and compensation of the employee, respectively;
(iv) participants who are not residents in India are not entitled to more than
twenty per cent of the fund’s assets; and
(v) the fund is subject to Government regulation and provides information
reporting to the income-tax authorities;
“Pension Fund of a Governmental entity, International Organisation or Central
Bank” means a fund established by a Governmental entity, International
Organisation or Central Bank to provide retirement, disability or death benefits
to beneficiaries or participants who are current or former employees (or persons
nominated by such employees), or who are not current or former employees, if
the benefits provided to such beneficiaries or participants are in consideration of
personal services rendered to the Governmental entity, International
Organisation or Central Bank;
“non-public fund of the armed forces” means a fund established in India as a
regimental fund or non-public fund by the armed forces of the Union of India
for the welfare of the current and former members of the armed forces and
whose income is exempt from tax under clause (23AA) of section 10 of the Act;
“Employees’ State Insurance Fund” means the fund established as Employees’
State Insurance Fund under the provisions of the Employees’ State Insurance
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(J)
(K)
(L)
(M)
Act, 1948 (34 of 1948), to provide medical expenses of low-income factory
workers in India;
“gratuity fund” means a fund established under the Payment of Gratuity Act,
1972 (39 of 1972), to provide for the payment of a gratuity to certain types of
employees of an Indian employer specified in the Payment of Gratuity Act,
1972;
“provident fund” means a fund established under the Provident Funds Act, 1925
(19 of 1925) or the Employees’ Provident Funds and Miscellaneous Provisions
Act, 1952 (19 of 1952) to provide current and former employees of Indian
employers retirement benefits in consideration for services rendered:
Provided that fund,(i) does not have any beneficiary with a right to more than five per cent. of the
fund’s assets;
(ii) is subject to Government regulation and provides annual information
reporting about its beneficiaries to the income- tax authorities;
(iii) is generally exempt from tax on investment income due to its status as a
provident fund; and
(iv) contributions (other than permitted make-up contributions) by employees to
the fund are limited by reference to earned income of the employee or may
not exceed an amount equivalent to fifty thousand U.S. dollars annually,
applying the procedures set forth in clause (c) of sub-rule (7) of rule 114H
for account aggregation and currency translation;
“qualified credit card issuer” means a financial institution satisfying the
following requirements, namely:(i) it is a financial institution only because it is an issuer of credit cards and
accepts deposits only when a customer makes a payment in excess of a
balance due with respect to the card and the overpayment is not
immediately returned to the customer; and
(ii) beginning on or before the 1st July, 2014, the financial institution
implements policies and procedures either to prevent a customer from
making an overpayment in excess of an amount equivalent to fifty thousand
U.S. dollars or to ensure that any customer overpayment in excess of an
amount equivalent to fifty thousand U.S. dollars is refunded to the customer
within sixty days, in each case applying the rules set forth in clause (c) of
sub-rule (7) of rule 114H for account aggregation and currency translation.
Explanation.-For the purpose of this sub-clause, a customer overpayment
does not refer to credit balances to the extent of disputed charges but
includes credit balances resulting from merchandise returns;
“exempt collective investment vehicle” means an investment entity that is
regulated as a collective investment vehicle, provided that all of the interests in
the collective investment vehicle are held by or through persons other than,(i) those referred to in sub-clauses (a) to (c) of clause (6); and
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(ii) a non-participating financial institution.
Explanation.- An investment entity which is regulated as a collective investment
vehicle does not fail to qualify under this clause as an exempt collective
investment vehicle, only because it has issued physical shares in bearer form:
Provided that(i) the collective investment vehicle has not issued, and does not issue, any
physical shares in bearer form after the 31st December, 2012;
(ii) the collective investment vehicle retires all such shares upon surrender;
(iii) the collective investment vehicle performs the due diligence procedures set
forth in rule 114H and reports any information required to be reported with
respect to any such shares when such shares are presented for redemption or
other payment; and
(iv) the collective investment vehicle has in place policies and procedures to
ensure that such shares are redeemed or immobilised as soon as possible,
and in any event prior to the 1st January, 2017;
(N) “financial institution with a local client base” means a financial institution
satisfying the following requirements, namely:(i) it has been granted a license and is regulated as a financial institution
under any law for the time being in force;
(ii) the financial institution does not have a fixed place of business outside
India.
Explanation.- For the purposes of this sub-clause, a fixed place of business
does not include a location that is not advertised to the public and from
which the financial institution performs only administrative support
functions; and
(iii) the financial institution does not solicit customers or account holders
outside India.
Explanation.- For the purpose of this sub-clause, a financial institution
shall not be considered to have solicited customers or account holders
outside India merely because the financial institution,(a) operates a website, provided that the website does not specifically
indicate that the financial institution provides financial accounts or
services to non-residents, and does not otherwise target or solicit
customers or account holders who are resident of any country or territory
outside India for tax purposes; or
(b) advertises in print media or on a radio or television station which is
distributed or aired primarily within India but is also incidentally
distributed or aired in other countries, provided that the advertisement does
not specifically indicate that the financial institution provides financial
accounts or services to non-residents, and does not otherwise target or
solicit customers or account holders who are resident of any country or
territory outside India for tax purposes;
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(iv) the financial institution is required under any law for the time being in
force to identify resident account holders for purposes of either
information reporting or withholding of tax with respect to financial
accounts held by residents or for purposes of satisfying the due diligence
requirements under the Prevention of Money-laundering Act, 2002 (15 of
2003);
(v) at least ninety eight per cent. of the financial accounts by value maintained
by the financial institution are held by residents;
(vi) beginning on or before the 30th June, 2014, the policies and procedures of
the financial institution are consistent with those set forth in rule 114H, to
prevent the financial institution from providing a financial account to any
non-participating financial institution and to monitor whether the financial
institution opens or maintains a financial account for any reportable person
who is not a resident of India (including a non-resident who was a resident
of India when the financial account was opened but subsequently ceases to
be a resident of India) or any passive non-financial entity with controlling
persons who are reportable persons;
(vii) such policies and procedures explicitly provide that if any financial
account held by a reportable person who is not a resident of India or by a
passive non-financial entity with controlling persons who are reportable
persons who are not resident of India is identified, the financial institution
shall report such financial account as would be required if the financial
institution was a reporting financial institution or close such financial
account;
(viii) with respect to a pre-existing account held by an individual who is not a
resident of India or by an entity, the financial institution shall review those
pre-existing accounts in accordance with the procedures set forth in rule
114H applicable to pre-existing accounts to identify any reportable
account or financial account held by a non-participating financial
institution, and shall report such financial account as would be required if
the financial institution were a reporting financial institution or close such
financial account;
(ix) each related entity of the financial institution that is a financial institution
must be incorporated or organised in India and, with the exception of any
related entity that is a retirement fund referred to in clauses (D) to (G) of
this Explanation, satisfies the requirements set forth in this clause; and
(x) the financial institution must not have policies or practices which
discriminate against opening or maintaining financial accounts for
individuals who are specified U.S. persons and residents of India;
(O) “local bank” means a financial institution satisfying the following requirements,
namely:-
14
(i)
the financial institution operates only as (and is licensed and regulated
under any law for the time being in force) a bank, or a credit union or
similar cooperative credit organisation which is operated without profit;
(ii) the business of the financial institution consists primarily of receiving
deposits from and making loans to, with respect to a bank, unrelated retail
customers and, with respect to a credit union or similar cooperative credit
organisation, members, provided that no member has a greater than five
per cent. interest in such credit union or cooperative credit organisation;
(iii) the financial institution satisfies the requirements set forth in sub-clauses
(ii) and (iii) of clause (N), provided that, in addition to the limitations on
the website referred to in sub-clause (iii) of clause (N), the website does
not permit the opening of a financial account;
(iv) the financial institution does not have more than an amount equivalent to
one hundred seventy-five million U.S. dollars in assets on its balance
sheet, and the financial institution and any related entity, taken together,
does not have more than an amount equivalent to five hundred million
U.S. dollars in total assets on its consolidated or combined balance sheets;
and
(v) any related entity must be incorporated or organised in India, and any
related entity that is a financial institution, with the exception of any
related entity that is a retirement fund referred to in clauses (D) to (G) or a
financial institution with only low-value accounts referred to in clause (P),
must satisfy the requirements set forth in this clause.
Explanation.- Regional Rural Banks constituted under the Regional Rural Bank
Act 1976 (21 of 1976), Urban Cooperative Banks constituted under respective
State Cooperative Societies Acts or Multi State Cooperative Societies Act, State
Cooperative Banks or District Central Cooperative Banks constituted under
respective State Cooperative Societies Act and Local Area Banks licensed under
the Banking Regulations Act, 1949 (10 of 1949) and regulated and registered as
public limited companies under the Companies Act, 1956 (1 of 1956) or
Companies Act, 2013 (18 of 2013), that satisfy the requirement under sub-clause
(iv) shall be treated as local bank for the purpose of this clause;
(P) “financial institution with only low-value accounts” means a financial institution
satisfying the following requirements, namely:(i) the financial institution is not an investment entity;
(ii) no financial account maintained by the financial institution or any related
entity has a balance or value in excess of an amount equivalent to fifty
thousand U.S. dollars, applying the procedures prescribed in clause (c) of
sub-rule (7) of rule 114H for account aggregation and currency translation;
and
(iii) the financial institution does not have more than fifty million U.S. dollars
in assets on its balance sheet, and the financial institution and any related
15
entities, taken together, do not have more than fifty million U.S. dollars in
total assets on their consolidated or combined balance sheets.
(Q) “sponsored investment entity and controlled foreign corporation” means a
financial institution described in the following sub-clauses, namely:(i) a financial institution is a sponsored investment entity if(a) it is an investment entity established in India that is not a qualified
intermediary (being an intermediary that is a party to a withholding
agreement with the United States of America), withholding foreign
partnership, or withholding foreign trust; and
(b) an entity has agreed with the financial institution to act as a sponsoring
entity for the financial institution;
(ii) a financial institution is a sponsored controlled foreign corporation if(a) the financial institution is a controlled foreign corporation established
under any law for the time being in force in India that is not a qualified
intermediary (being an intermediary which is a party to a withholding
agreement with the United States of America), withholding foreign
partnership, or withholding foreign trust;
(b) the financial institution is wholly owned, directly or indirectly, by a
reporting U.S. financial institution referred to in Article 1 of the
FATCA agreement that agrees to act, or requires an affiliate of the
financial institution to act, as a sponsoring entity for the financial
institution; and
(c) the financial institution shares a common electronic account system
with the sponsoring entity that enables the sponsoring entity to identify
all account holders and payees of the financial institution and to access
all account and customer information maintained by the financial
institution including, but not limited to, customer identification
information, customer documentation, account balance, and all
payments made to the account holder or payee,
and that complies with the following requirements namely:(I) the sponsoring entity is authorised to act on behalf of the financial
institution (such as a fund manager, trustee, corporate director, or managing
partner) to fulfil applicable registration requirements of the United States of
America;
(II) the sponsoring entity has registered as a sponsoring entity with the United
States of America;
(III) if the sponsoring entity identifies any U.S. reportable account with respect
to the financial institution, the sponsoring entity registers the financial
institution pursuant to applicable registration requirements of the United
States of America on or before the 31st December, 2015 or the date that is
ninety days after such U.S. reportable account is first identified, whichever
is later;
16
(IV) the sponsoring entity agrees to perform, on behalf of the financial
institution, all due diligence, withholding, reporting, and other requirements
that the financial institution would have been required to perform if it were
a reporting financial institution;
(V) the sponsoring entity identifies the financial institution and includes the
identifying number of the financial institution (obtained by following
applicable registration requirements of the United States of America) in all
its reporting completed on the financial institution’s behalf; and
(VI) the sponsoring entity has not had its status as a sponsor revoked;
(R) “sponsored, closely held investment vehicle” means a financial institution
satisfying the following requirements, namely:(i) it is a financial institution only because it is an investment entity and is not
a qualified intermediary (being an intermediary that is a party to a
withholding agreement with the United States of America), withholding
foreign partnership, or withholding foreign trust;
(ii) the sponsoring entity is a reporting U.S. financial institution referred to in
Article 1 of the FATCA agreement, reporting financial institution, or
participating foreign financial institution defined in Annex II of the
FATCA agreement, is authorised to act on behalf of the financial
institution (such as a professional manager, trustee, or managing partner),
and agrees to perform, on behalf of the financial institution, all due
diligence, withholding, reporting, and other requirements which the
financial institution would have been required to perform if it were a
reporting financial institution;
(iii) the financial institution does not act as an investment vehicle for unrelated
parties;
(iv) twenty or less than twenty individuals own all the debt interests and equity
interests in the financial institution (other than debt interests owned by
participating foreign financial institution defined in Annex II of the
FATCA agreement and non-reporting financial institutions and equity
interests owned by an entity if that entity owns hundred per cent. of the
equity interests in the financial institution and is itself a sponsored
financial institution described in this clause); and
(v) the sponsoring entity complies with the following requirements, namely:(a) it has been registered as a sponsoring entity in terms of the Foreign
Account Tax Compliance Act of the United States of America;
(b) the sponsoring entity agrees to perform, on behalf of the financial
institution, all due diligence, withholding, reporting, and other
requirements that the financial institution would have been required to
perform if it were a reporting financial institution and retains
documentation collected with respect to the financial institution for a
period of six years;
17
(c) the sponsoring entity identifies the financial institution in all its
reporting completed on the financial institution’s behalf; and
(d) the sponsoring entity has not had its status as a sponsor revoked;
(6) “reportable account” means a financial account which has been identified, pursuant to
the due diligence procedures provided in rule 114H, as held by,(a) a reportable person; or
(b) an entity, not based in United Sates of America, with one or more controlling
persons that is a specified U.S. person; or
(c) a passive non-financial entity with one or more controlling persons that is a
person described in sub-clause (b) of clause (8) of this rule.
Explanation.- For the purpose of this clause,(A) “active non-financial entity” means any non-financial entity which fulfils any of
the following criteria, namely:(i) less than fifty per cent of the entity’s gross income for the preceding
financial year is passive income and less than fifty per cent of the assets
held by the entity during the preceding financial year are assets that produce
or are held for the production of passive income; or
(ii) the stock of the entity is regularly traded on an established securities market
or the non-financial entity is a related entity of an entity, the stock of which
is regularly traded on an established securities market.
Explanation.- For the purpose of this sub-clause, an established securities
market means an exchange that is recognised and supervised by a
Governmental authority in which the securities market is located and that
has a meaningful annual value of shares traded on the exchange;
(iii) the entity is a Governmental entity, an International Organization, a Central
Bank, or an entity wholly owned by one or more of these entities; or
(iv) substantially all of the activities of the entity consist of holding (in whole or
in part) the outstanding stock of, or providing financing and services to, one
or more subsidiaries that engage in trades or businesses other than the
business of a financial institution:
Provided that an entity shall not qualify for this status if it functions as an
investment fund, such as a private equity fund, venture capital fund,
leveraged buyout fund, or any investment vehicle whose purpose is to
acquire or fund companies and then hold interests in those companies as
capital assets for investment purposes; or
(v) the entity is not yet operating a business and has no prior operating history,
but is investing capital into assets with the intent to operate a business other
than that of a financial institution, provided that the entity shall not qualify
for this exception after the date that is twenty four months after the date of
the initial organisation of the entity; or
(vi) the entity was not a financial institution in the past five years, and is in the
process of liquidating its assets or is reorganising with intent to continue or
18
recommence operations in a business other than that of a financial
institution; or
(vii) the entity primarily engages in financing and hedging transactions with, or
for, related entities which are not financial institutions, and does not
provide financing or hedging services to any entity which is not a related
entity, provided that the group of any such related entities is primarily
engaged in a business other than that of a financial institution; or
(viii)the entity fulfils all of the following requirements, namely:(a) it is established and operated in India exclusively for religious,
charitable, scientific, artistic, cultural, athletic, or educational purposes;
or it is established and operated in India and it is a professional
organisation, business league, chamber of commerce, labour
organisation, agricultural or horticultural organisation, civic league or
an organisation operated exclusively for the promotion of social
welfare;
(b) it is exempt from income-tax in India;
(c) it has no shareholders or members who have a proprietary or beneficial
interest in its income or assets;
(d) the applicable laws of the entity’s country or territory of residence or
the entity’s formation documents do not permit any income or assets of
the entity to be distributed to, or applied for the benefit of, a private
person or non-charitable entity other than pursuant to the conduct of the
entity’s charitable activities, or as payment of reasonable compensation
for services rendered, or as payment representing the fair market value
of property which the entity has purchased; and
(e) the applicable laws of the entity’s country or territory of residence or
the entity’s formation documents require that, upon the entity’s
liquidation or dissolution, all of its assets must be distributed to a
Governmental entity or other non-profit organization, or escheat to the
Government of the entity’s country or territory of residence or any
political sub-division thereof.
Explanation.- For the purpose of this sub-clause, the following shall be
treated as fulfilling the criteria provided in the said sub-clause, namely:(I) an Investor Protection Fund referred to in clause (23EA);
(II) a Credit Guarantee Fund Trust for Small Industries referred to in
clause 23EB; and
(III) an Investor Protection Fund referred to in clause (23EC),
of section 10 of the Act;
(B) “controlling person” means the natural person who exercises control over an
entity and includes a beneficial owner as determined under sub-rule (3) of rule 9
of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.
19
Explanation 1.- In determining the beneficial owner, the procedure specified in
the following circular as amended from time to time shall be applied, namely:(i) DBOD.AML.BC. No.71/14.01.001/2012-13, issued on the 18th January,
2013 by the Reserve Bank of India; or
(ii) CIR/MIRSD/2/2013, issued on the 24th January, 2013 by the Securities and
Exchange Board of India; or
(iii) IRDA/SDD/GDL/CIR/019/02/2013, issued on the 4th February, 2013 by the
Insurance Regulatory and Development Authority.
Explanation 2.- In the case of a trust, the controlling person means the settlor,
the trustees, the protector (if any), the beneficiaries or class of beneficiaries, and
any other natural person exercising ultimate effective control over the trust, and
in the case of a legal arrangement other than a trust, the said expression means
the person in equivalent or similar position;
(C) “non-financial entity” means any entity that is not a financial institution;
(D) “passive non-financial entity” means,(i) any non-financial entity which is not an active non-financial entity; or
(ii) an investment entity described in sub-clause (B) of clause (c) of the
Explanation to clause (3); or
(iii) a withholding foreign partnership or withholding foreign trust;
(E) an entity is a “related entity” of another entity if either entity controls the other
entity, or the two entities are under common control.
Explanation.- For the purpose of this clause control includes direct or indirect
ownership of more than fifty per cent. of the votes and value in an entity;
(F) “passive income” includes income by way of,(i) dividends;
(ii) interest;
(iii) income equivalent to interest;
(iv) rents and royalties (other than rents and royalties derived in the active
conduct of a business conducted, at least in part, by employees of the nonfinancial entity);
(v) annuities;
(vi) the excess of gains over losses from the sale or exchange of financial
assets which gives rise to the passive income;
(vii) the excess of gains over losses from transactions (including futures,
forwards, options, and similar transactions) in any financial assets;
(viii) the excess of foreign currency gains over foreign currency losses;
(ix) net income from swaps; or
(x) amounts received under cash value insurance contracts:
Provided that passive income will not include, in the case of a non-financial
entity that regularly acts as a dealer in financial assets, any income from any
transaction entered into in the ordinary course of such dealer’s business as such a
dealer.
20
(7) “reporting financial institution” means,(a) a financial institution (other than a non-reporting financial institution) which is
resident in India, but excludes any branch of such institution, that is located
outside India; and
(b) any branch, of a financial institution (other than a non-reporting financial
institution) which is not resident in India, if that branch is located in India;
(8) “reportable person” means,(a) one or more specified U.S. persons; or
(b) one or more persons other than,(i) a corporation, the stock of which is regularly traded on one or more
established securities markets;
(ii) any corporation that is a related entity of a corporation mentioned in item
(i);
(iii) a Governmental entity;
(iv) an International organisation;
(v) a Central bank; or
(vi) a financial institution,
that is a resident of any country or territory outside India (except the United States
of America) under the tax laws of such country or territory or an estate of a
decedent who was a resident of any country or territory outside India (except the
United States of America) under the tax laws of such country or territory;
(9) “specified U.S. person” means a U.S. Person, other than the persons referred to in
sub-clauses (i) to (xiii) of clause (ff) of Article 1 of the FATCA agreement;
(10) “U.S. person” means,(a) an individual, being a citizen or resident of the United States of America ;
(b) a partnership or corporation organized in the United States of America or under
the laws of the United States of America or any State thereof;
(c) a trust if,(i) a court within the United States of America would have authority under
applicable law to render orders or judgments concerning substantially all
issues regarding administration of the trust; and
(ii) one or more U.S. persons have the authority to control all substantial
decisions of the trust; or
(d) an estate of a decedent who was a citizen or resident of the United States of
America;
(11) “U.S. reportable account” means a financial account maintained by a reporting
financial institution and, pursuant to the due diligence procedures provided in rule 114H,
is identified to be held by one or more specified U.S. persons or by an entity not based in
the United States of America with one or more controlling persons which is a specified
U.S. Person;
(12) “U.S. source withholdable payment” means any payment of interest (including any
original issue discount), dividends, rents, salaries, wages, premiums, annuities,
21
compensations, remunerations, emoluments, and other fixed or determinable annual or
periodical gains, profits, and income, if such payment is from sources within the United
States of America:
Provided that a U.S. source withholdable payment shall not include any payment that is
not treated as a withholdable payment in relevant Treasury Regulations of the United
States of America;
(13) “withholding foreign partnership” means a foreign partnership that has entered into
a withholding agreement with the United States of America in which it agrees to assume
primary withholding responsibility for all payments which are made to it for its partners,
beneficiaries or owners;
(14) “withholding foreign trust” means a foreign trust that has entered into a withholding
agreement with the United States of America in which it agrees to assume primary
withholding responsibility for all payments which are made to it for its partners,
beneficiaries or owners.
22
114G. Information to be maintained and reported.- (1) The following information shall be
maintained and reported by a reporting financial institution in respect of each reportable
account, namely:(a) the name, address, taxpayer identification number (assigned to the account holder
by the country or territory of his residence for tax purposes) and date and place of
birth (in the case of an individual) of each reportable person, that is an account
holder of the account;
(b) in the case of any entity which is an account holder and which, after application of
due diligence procedures prescribed in rule 114H, is identified as having one or
more controlling persons that is a reportable person,(i) the name and address of the entity, taxpayer identification number assigned to
the entity by the country or territory of its residence; and
(ii) the name, address, date and place of birth of each such controlling person and
taxpayer identification number assigned to such controlling person by the
country or territory of his residence;
(c) the account number (or functional equivalent in the absence of an account number);
(d) the account balance or value (including, in the case of a cash value insurance
contract or annuity contract, the cash value or surrender value) at the end of relevant
calendar year or, if the account was closed during such year, immediately before
closure;
(e) in the case of any custodial account,(i) the total gross amount of interest, the total gross amount of dividends, and the
total gross amount of other income generated with respect to the assets held in
the account, in each case paid or credited to the account (or with respect to the
account) during the calendar year; and
(ii) the total gross proceeds from the sale or redemption of financial assets paid or
credited to the account during the calendar year with respect to which the
reporting financial institution acted as a custodian, broker, nominee, or
otherwise as an agent for the account holder;
(f) in the case of any depository account, the total gross amount of interest paid or
credited to the account during the relevant calendar year;
(g) in the case of any account other than that referred to in clauses (e) or (f), the total
gross amount paid or credited to the account holder with respect to the account
during the relevant calendar year with respect to which the reporting financial
institution is the obligor or debtor, including the aggregate amount of any
redemption payments made to the account holder during the relevant calendar year;
and
(h) in the case of any account held by a non-participating financial institution, for
calendar year 2015 and 2016, the name of each non-participating financial
institution to which payments have been made and the aggregate amount of such
payments:
Provided that the information to be reported,23
(i)
with respect to calendar year 2014, is the information referred to in clauses (a), (b),
(c) and (d), with regard to U.S. reportable accounts;
(ii) with respect to calendar year 2015, is the information referred to in clauses (a), (b),
(c), (d), (f), (g), (h) and sub-clause (i) of clause (e), with regard to U.S. reportable
accounts;
(iii) with respect to calendar year 2016, is the information referred to in clauses (a) to (h),
with regard to all reportable accounts;
(iv) with respect to calendar year 2017 and subsequent years, is the information referred
to in clauses (a) to (g), with regard to all reportable accounts:
Provided further that with respect to each U.S. reportable account which is maintained by a
reporting financial institution as on the 30th June, 2014, the taxpayer identification number of
any relevant person is not required to be reported if such taxpayer identification number is
not in the records of the reporting financial institution.
(2) For the purpose of sub-rule (1),(a) “account holder” means the person listed or identified as the holder of a financial
account by the financial institution that maintains the account:
Provided that a person, other than a financial institution, holding a financial account
for the benefit or on account of another person as agent, custodian, nominee,
signatory, investment advisor, or intermediary, is not treated as holding the account,
and such other person is treated as holding the account:
Provided further that in the case of a cash value insurance contract or an annuity
contract, the account holder is any person entitled to receive a payment upon the
maturity of the contract or any person entitled to access the cash value or change the
beneficiary of the contract and if no person can access the cash value or change the
beneficiary, the account holder is any person named as the owner in the contract and
any person with a vested entitlement to payment under the terms of the contract;
(b) “taxpayer identification number” means a number assigned to a person in the
country or territory in which he is resident for tax purposes and includes a functional
equivalent in case no such number is assigned.
(3) Where the person is a resident of more than one country or territory outside India under
the tax laws of such country or territory, the reporting financial institution shall maintain the
taxpayer identification number in respect of each such country or territory.
(4) Notwithstanding anything contained in sub-rule (1), with respect to each reportable
account which is a pre-existing account, the taxpayer identification number or date of birth is
not required to be reported if such taxpayer identification number or date of birth is not in the
records of the reporting financial institution:
Provided that the reporting financial institution shall obtain the taxpayer identification
number and date of birth with respect to pre-existing accounts by the 31st December, 2016
and shall report it with respect to calendar year 2017 and subsequent years.
(5) Notwithstanding anything contained in sub-rule (1) and sub-rule (4), the taxpayer
identification number is not required to be reported if,-
24
(i) a taxpayer identification number (including its functional equivalent) is not issued by
the relevant country or territory outside India in which the person is resident for tax
purposes or;
(ii) the domestic law of the relevant country or territory outside India does not require the
collection of the taxpayer identification number issued by such country or territory.
(6) Notwithstanding anything contained in sub-rule (1), the place of birth is not required to
be reported unless it is available in the electronically searchable data maintained by the
reporting financial institution.
(7) The statement of reportable account required to be furnished under clause (k) of subsection (1) of section 285BA shall be furnished by a reporting financial institution in respect
of each account which has been identified, pursuant to due diligence procedure specified in
rule 114H, as a reportable account:
Provided that where pursuant to such due diligence procedures no account is identified as a
reportable account, a nil statement shall be furnished by the reporting financial institution.
(8) The statement referred to in sub-rule (7) shall be furnished in Form No. 61B for every
calendar year by the 31st day of May following that year:
Provided that the statement pertaining to calendar year 2014 shall be furnished by the 31st
day of August, 2015.
(9) (a) The statement referred to in sub-rule (7) shall be furnished to the Director of Incometax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence
and Criminal Investigation) through online transmission of electronic data to a server
designated for this purpose under the digital signature in accordance with the data structure
specified in this regard by the Principal Director General of Income-tax (Systems).
Explanation.—For the purposes of this sub-rule, “digital signature” means a digital signature
issued by any Certifying Authority authorised to issue such certificates by the Controller of
Certifying Authorities.
(b) Principal Director General of Income Tax (Systems) shall specify the procedures, data
structures and standards for ensuring secure capture and transmission of data, evolving and
implementing appropriate security, archival and retrieval policies.
(10) (a) Every reporting financial institution shall communicate to the Principal Director
General of Income-tax (Systems) the name, designation and communication details of the
Designated Director and the Principal Officer and obtain a registration number;
(b) The statement referred to in sub-rule (7) shall be signed, verified and furnished by the
Designated Director of the reporting financial institution on the basis of information available
with the institution:
Provided that where the reporting financial institution is a non-resident, the statement may be
signed, verified and furnished by a person who holds a valid power of attorney from such
Designated Director;
(c) It shall be the duty of every reporting financial institution, its Designated Director,
Principal Officer and employees to observe the procedure and the manner of maintaining
information as specified by its regulator.
Explanation.- For the purposes of this sub-rule,25
(a) "Designated Director" means a person designated by the reporting financial institution to
ensure overall compliance with the obligations imposed under section 285BA and the rules
made thereunder and includes—
(i) the Managing Director or a whole-time Director, as defined in the Companies Act,
2013 (18 of 2013), duly authorised by the Board of Directors if the reporting
financial institution is a company;
(ii) the managing partner if the reporting financial institution is a partnership firm;
(iii) the proprietor if the reporting financial institution is a proprietorship concern;
(iv) the managing trustee if the reporting financial institution is a trust;
(v) a person or individual, as the case may be, who controls and manages the affairs of
the reporting financial institution if the reporting financial institution is an
association of persons or a body of individuals, or any other person;
(b) “Principal Officer” means an officer designated by the reporting financial institution;
(c) “regulator” means a person or an authority or a Government which is vested with the
power to license, authorise, register, regulate or supervise the activities of the reporting
financial institution.
(11)(a) The regulator referred to in clause (c) of sub-rule (10) shall issue instructions or
guidelines to,(i) incorporate the requirements of reporting and due diligence procedure specified
under rules 114F to 114H;
(ii) provide the procedure and manner of maintaining the information by the
reporting financial institution; and
(iii) ensure the availability of the information referred to in sub-rule (1) with the
reporting financial institution for meeting its reporting obligation, if such
information is not maintained by it under any rule or regulation issued by the
regulator.
(b) Every reporting financial institution shall maintain information in respect of financial
accounts in accordance with the procedure and manner as may be specified by its regulator
from time to time so as to enable reporting of information prescribed under this rule and
perform due diligence procedure specified under rule 114H.
26
114H. Due diligence requirement.- (1) An account shall be treated as a reportable account
beginning as on the date it is identified as such pursuant to the due diligence procedure
specified in sub-rule (3) to sub-rule (8) and, unless otherwise provided, information with
respect to a reportable account shall be reported annually in the calendar year following the
calendar year to which the information relates.
(2) For the purpose of this rule,(a) “documentary evidence” includes any of the following, namely:(i) a certificate of residence issued by an authorised Government body, including
a Government agency or a municipality, of the country or territory in which
the payee claims to be a resident;
(ii) with respect to an individual, any valid identification issued by an authorized
Government body, including a Government agency or a municipality, that
includes the individual’s name and is particularly used for identification
purposes;
(iii) with respect to an entity, any official documentation issued by an authorized
Government body, including a Government agency or a municipality, which
includes the name of the entity and either the address of its principal office in
the country or territory in which it claims to be a resident or the country or
territory in which the entity was incorporated or organized;
(iv) any financial statement, third-party credit report, bankruptcy filing, or a report
of the Government agency regulating the securities market;
(b) “high value account” means a pre-existing individual account with a balance or
value that,(i) in case of a U.S. reportable account, exceeds an amount equivalent to one
million U.S. dollars as on the 30th June, 2014 or 31st December of any
subsequent year; and
(ii) in case of other reportable account, exceeds an amount equivalent to one
million U.S. dollars as on the 31st December, 2015 or 31st December of any
subsequent year;
(c) “lower value account” means a pre-existing individual account with a balance or
value that,(i) in case of a U.S. reportable account, exceeds an amount equivalent to fifty
thousand U.S. dollars but does not exceed an amount equivalent to one million
U.S. dollars as on the 30th June, 2014; and
(ii) in case of other reportable account, does not exceed an amount equivalent to one
million U.S. dollars as on the 31st December, 2015;
(d) “new account” means a financial account maintained by a reporting financial
institution opened on or after,
(i) in case of a U.S. reportable account, the 1st July, 2014; and
(ii) in case of other reportable account, the 1st January, 2016;
(e) “new entity account” means a new account held by one or more entities;
(f) “new individual account” means a new account held by one or more individuals;
27
(g) “other reportable account” means a reportable account which is not a U.S.
reportable account;
(h) “pre-existing account” means a financial account maintained by a reporting
financial institution as on,(I) in case of a U.S. reportable account, the 30th June, 2014; and
(II) in case of other reportable account, the 31st December 2015;
(i) “pre-existing entity account” means a pre-existing account held by one or more
entities;
(j) “pre-existing individual account” means a pre-existing account held by one or more
individuals;
(k) where a balance or value threshold is to be determined at the end of a calendar year,
the relevant balance or value shall be determined as on the last day of the reporting
period which ends with or within that calendar year.
(3) The due diligence procedure for the purposes of identifying reportable accounts among
pre-existing individual accounts shall be the following, namely:(a) a pre-existing individual account is not required to be reviewed, identified or
reported, if,(i) in case of a U.S. reportable account,(A) the balance or value as on the 30th June, 2014, does not exceed an amount
equivalent to fifty thousand U.S. dollars, subject to sub-clause (vi) of clause
(c) of this sub-rule; or
(B) which is a cash value insurance contract or an annuity contract, the balance
or value does not exceed an amount equivalent to two hundred and fifty
thousand U.S. dollars as on the 30th June, 2014, subject to sub-clause (vi) of
clause (c) of this sub-rule; or
(C) which is a cash value insurance contract or an annuity contract, the
reporting financial institution, under any other law for the time being in
force in India or of the United States of America, is prevented from selling
such contract to a person who is a resident of the United States of America;
(ii) in case of other reportable account, which is a cash value insurance contract or
an annuity contract, the reporting financial institution, under any other law for
the time being in force in India, is prevented from selling such contract to a
person who is not a resident of India for tax purposes;
(b) with respect to lower value accounts among pre-existing individual accounts the
following procedures shall apply, namely:(i) the reporting financial institution must review electronically searchable data
maintained by the reporting financial institution for any of the following
indicia, and apply provisions contained in sub-clauses (ii) to (v), namely:(A) identification of the account holder as a resident of any country or territory
outside India for tax purposes or unambiguous indication of a place of birth
in the United States of America; or
28
(ii)
(iii)
(iv)
(v)
(B) current mailing or residence address (including a post office box) in any
country or territory outside India; or
(C) one or more telephone numbers in a country or territory outside India and
no telephone number in India; or
(D) standing instructions (other than with respect to a depository account) to
transfer funds to an account maintained in a country or territory outside
India; or
(E) currently effective power of attorney or signatory authority granted to a
person with an address in a country or territory outside India; or
(F) a “hold mail” instruction or “in-care-of” address in a country or territory
outside India if the reporting financial institution does not have any other
address on file for the account holder;
if none of the indicia listed in sub-clause (i) are discovered in the electronic
search, then no further action is required until there is a change in
circumstances which results in one or more indicia being associated with the
account, or the account becomes a high value account;
if any of the indicia listed in items (A) to (E) of sub-clause (i) are discovered in
the electronic search, or if there is a change in circumstances which results in
one or more indicia being associated with the account, then the reporting
financial institution shall treat the account holder as resident for tax purposes of
each such country or territory for which an indicium is identified, unless it
elects to apply sub-clause (v) and one of the exceptions in the said sub-clause
applies with respect to that account;
if a “hold mail” instruction or “in-care-of” address is discovered in the
electronic search and no other address and none of the other indicia listed in
items (A) to (E) of sub-clause (i) are identified for the account holder, the
reporting financial institution shall apply the paper record search referred to in
sub-clause (ii) of clause (c), or seek to obtain from the account holder a selfcertification or documentary evidence to establish the residence or residences
for tax purposes of such account holder:
Provided that if the paper search fails to establish an indicium and the attempt
to obtain the self-certification or documentary evidence is not successful, the
reporting financial institution shall report the account as an undocumented
account;
notwithstanding a finding of indicia under sub-clause (i), a reporting financial
institution is not required to treat an account holder as a resident, for tax
purposes,(A) of United States of America if, the account holder’s information
unambiguously indicates a place of birth in the United States of America
and the reporting financial institution obtains, or has previously reviewed
and maintains a record of,-
29
(I) a self-certification that the account holder is neither a citizen of the
United States of America nor its resident for tax purposes;
(II) a passport or other Government-issued identification evidencing the
account holder’s citizenship or nationality in a country other than the
United States of America; and
(III) a copy of the account holder’s certificate of loss of nationality of the
United States of America or a reasonable explanation of(1) the reason, the account holder does not have such a certificate
despite relinquishing citizenship of the United States of America;
or
(2) the reason, the account holder did not obtain citizenship of the
United States of America at birth;
(B) of any country or territory outside India if, the account holder’s information
contains a current mailing or residence address in any country or territory
outside India, one or more telephone numbers in any country or territory
outside India (and no telephone number in India) or standing instructions
(with respect to financial accounts other than depository accounts) to
transfer funds to an account maintained in any country or territory outside
India, the reporting financial institution obtains, or has previously reviewed
and maintains a record of,(I) a self-certification from the account holder of the country or territory
or countries or territories of residence for tax purposes of such account
holder that does not include any country or territory outside India; and
(II) documentary evidence establishing the account holder’s non-reportable
status;
(C) of any country or territory outside India if, the account holder’s information
contains a currently effective power of attorney or signatory authority
granted to a person with an address in a country or territory outside India,
or one or more telephone numbers in any country or territory outside India
(if an Indian telephone number in also associated with the account), the
reporting financial institution obtains, or has previously reviewed and
maintains a record of(I) a self-certification from the account holder of the country or territory
or countries or territories of residence of such account holder that does
not include any country or territory outside India; or
(II) documentary evidence establishing the account holder’s non-reportable
status;
(c) with respect to high value accounts among pre-existing individual accounts the
following enhanced review procedures shall apply, namely:(i) the reporting financial institution must review electronically searchable data
maintained by the reporting financial institution for any of the indicia
described in sub-clause (i) of clause (b);
30
if the reporting financial institution’s electronically searchable databases do
not capture all of the information referred to in sub-clause (iii) of this clause,
then the reporting financial institution shall also review the current customer
master file and, to the extent not contained in the current customer master file,
the following documents associated with the account and obtained by the
reporting financial institution during the last five years for any of the indicia
provided in sub-clause (i) of clause (b),(A) the most recent documentary evidence collected with respect to the
account;
(B) the most recent account opening contract or documentation;
(C) the most recent documentation obtained by the reporting financial
institution pursuant to rules framed under the Prevention of Moneylaundering Act, 2002 (15 of 2003) or any other law for the time being in
force;
(D) any power of attorney or signature authority forms currently in effect;
and
(E) any standing instructions (other than with respect to a depository
account) to transfer funds currently in effect:
Provided that where the electronically searchable databases include fields for,
and capture all the information referred to in sub-clause (iii) of this clause,
then review of the customer master file and documents referred to above shall
not be required;
(iii) a reporting financial institution is not required to perform the paper record
search referred in sub-clause (ii) of this clause to the extent the reporting
financial institution’s electronically searchable information includes the
following, namely:(A) the account holder’s residence status for tax purposes;
(B) the account holder’s residence address and mailing address currently on
file with the reporting financial institution;
(C) the account holder’s telephone number or numbers currently on file, if
any, with the reporting financial institution;
(D) in the case of financial accounts other than depository accounts, whether
there are standing instructions to transfer funds in the account to another
account (including an account at another branch of the reporting financial
institution or another financial institution);
(E) whether there is a current “in-care-of” address or “hold mail” instruction
for the account holder; and
(F) whether there is any power of attorney or signatory authority for the
account;
(iv) in addition to the electronic and paper record searches provided in sub-clauses
(i) to (iii) of this clause, the reporting financial institution shall treat as a
reportable account any high value account assigned to a relationship manager
(ii)
31
(including any financial accounts aggregated with that high value account) if
the relationship manager has actual knowledge that the account holder is a
reportable person;
(v) after application of review procedures specified in sub-clauses (i) to (iv) if,(A) none of the indicia referred to in sub-clause (i) of clause (b) are
discovered, and the account is not identified as held by a reportable person
as per sub-clause (iv), then further action is not required until there is a
change in circumstances which results in one or more indicia being
associated with the account;
(B) any of the indicia referred to in items (A) to (E) of sub-clause (i) of clause
(b) are discovered, or if there is a subsequent change in circumstances
which results in one or more indicia being associated with the account,
then the reporting financial institution shall treat the account as a
reportable account with respect to each country or territory outside India
for which an indicium is identified unless it elects to apply sub-clause (v)
of clause (b) and one of the exceptions in the said sub-clause applies with
respect to that account;
(C) a “hold mail” instruction or “in-care-of” address is discovered in the
electronic search and no other address and none of the other indicia
referred to in items (A) to (E) of sub-clause (i) of clause (b) are identified
for the account holder, the reporting financial institution shall obtain from
such account holder a self-certification or documentary evidence to
establish the residence or residences for tax purposes of the account
holder:
Provided that if the reporting financial institution cannot obtain such selfcertification or documentary evidence, it shall report the account as an
undocumented account;
(vi) if a pre-existing individual account is not a high value account as on the 30th
June, 2014 (for U.S. reportable account), or as the case may be, 31st
December, 2015 (for other reportable account), but becomes a high value
account as on the last day of year 2015 (for U.S. reportable account) or last
day of any subsequent calendar year (for all reportable accounts), the reporting
financial institution shall complete the enhanced review procedures specified
in this clause with respect to such account within the calendar year following
the year in which the account becomes a high value account and if based on
such review the account is identified as a reportable account, the reporting
financial institution shall report the required information about such account
with respect to the year in which it is identified as a reportable account and
subsequent years on an annual basis, unless the account holder ceases to be a
reportable person;
(vii) once a reporting financial institution applies the enhanced review procedures
specified in this clause to a high value account, the reporting financial
32
institution is not required to re-apply such procedures, other than an inquiry by
the relationship manager provided in sub-clause (iv), to the same high value
account in any subsequent year unless the account is undocumented where the
reporting financial institution shall re-apply them annually until such account
ceases to be undocumented;
(viii) if there is a change of circumstances with respect to a high value account
which results in one or more indicia referred to in sub-clause (i) of clause (b)
being associated with the account, then the reporting financial institution must
treat the account as a reportable account with respect to each such country or
territory outside India for which an indicium is identified unless it elects to
apply sub-clause (v) of clause (b) and one of the exceptions in the said subclause applies with respect to that account;
(ix) a reporting financial institution shall implement procedures to ensure that a
relationship manager identifies any change in circumstances of an account and
where the relationship manager is informed that the account holder has a new
mailing address in any country or territory outside India, the reporting
financial institution is required to treat the new address as a change in
circumstances and, if it elects to apply sub-clause (v) of clause (b), then it is
required to obtain the appropriate documentation from the account holder;
(d) review of pre-existing individual account,(i) in case of a U.S. reportable account which is high value account as on the 30th
June, 2014, shall be completed by the 31st December, 2015 and if based on this
review such account is identified as a U.S. reportable account after the 31st
December, 2014 and on or before the 31st December, 2015, the reporting
financial institution is not required to report information about such account
with respect to calendar year 2014, but shall report information about the
account on an annual basis thereafter;
(ii) in case of a U.S. reportable account which is low value account as on the 30th
June, 2014, or in case of other reportable account which is high value account as
on the 31st December, 2015, shall be completed by the 30th June, 2016;
(iii) in case of other reportable account that is low value account as on the 31st
December, 2015, must be completed by the 30th June, 2017;
(e) any pre-existing individual account which has been identified as a reportable
account under this sub-rule shall be treated as a reportable account in all subsequent
years, unless the account holder ceases to be a resident of any country or territory
outside India as per tax laws of such jurisdiction.
(4) The following procedures shall apply for purposes of identifying reportable accounts
among new individual accounts, namely:(a) unless the reporting financial institution elects otherwise, the following new
individual accounts are not required to be reviewed, or reported as U.S. reportable
accounts, namely:-
33
(i)
a depository account unless the account balance exceeds an amount equivalent
to fifty thousand U.S. dollars at the end of any calendar year;
(ii) a cash value insurance contract unless the cash value exceeds an amount
equivalent to fifty thousand U.S. dollars at the end of any calendar year;
(b) in case of a new individual account,(i) in respect of a U.S. reportable account, which does not fall under sub-clauses (i)
and (ii) of clause (a), upon account opening (or within ninety days after the end
of the calendar year in which the account ceases to be covered under subclauses (i) and (ii) of clause (a)); and
(ii) in respect of other reportable account, upon account opening,
the reporting financial institution shall obtain a self-certification, which may be
part of the account opening documentation, that allows the reporting financial
institution to determine the account holder’s residence or residences for tax
purposes and confirms the reasonableness of such self-certification based on the
information obtained by the reporting financial institution in connection with
the opening of the account, including any documentation collected in
accordance with Prevention of Money-laundering (Maintenance of Records)
Rules, 2005;
(c) where the self-certification obtained under clause (b) of this sub-rule establishes that
the account holder is resident for tax purposes in a country or territory outside India,
the reporting financial institution shall treat the account as a reportable account and
the self-certification shall also include the account holder’s taxpayer identification
number with respect to such country or territory outside India, subject to sub-rule
(5) of rule 114G, and date of birth;
(d) where a self-certification has been obtained under clause (b) of this sub-rule for a
new individual account and if there is a change of circumstances with respect to
such account which causes the reporting financial institution to know, or have
reason to know, that the said self-certification is incorrect or unreliable, the
reporting financial institution shall not rely on the said self-certification and shall
obtain a valid self-certification that establishes the residence or residences for tax
purposes of the account holder:
Provided that if the reporting financial institution is unable to obtain a valid selfcertification, the reporting financial institution shall treat the account as a reportable
account with respect to each such country or territory outside India for which an
indicium is identified.
(5) The following procedures shall apply for purposes of identifying reportable accounts
among pre-existing entity accounts, namely:(a) unless the reporting financial institution elects otherwise, either with respect to all
pre-existing entity accounts or, separately, with respect to any clearly identified
group of such accounts, a pre-existing entity account with an aggregate account
balance or value which does not exceed an amount equivalent to two hundred and
fifty thousand U.S. dollars as on the 30th June, 2014 (in case of a U.S. reportable
34
account), or as the case may be, 31st December, 2015 (in case of other reportable
account), is not required to be reviewed, identified, or reported as a reportable
account until the aggregate account balance or value exceeds an amount equivalent
to two hundred and fifty thousand U.S. dollars as of the last day of any subsequent
calendar year;
(b) a pre-existing entity account that has an aggregate account balance or value that
exceeds an amount equivalent to two hundred and fifty thousand U.S. dollars as on
the 30th June, 2014 (in case of a U.S. reportable account), or as the case may be, 31st
December, 2015 (in case of other reportable account), and a pre-existing entity
account that does not exceed an amount equivalent to two hundred and fifty
thousand U.S. dollars as on the 30th June, 2014 (in case of a U.S. reportable
account), or as the case may be, 31st December, 2015 (in case of other reportable
account) but the aggregate account balance or value exceeds an amount equivalent
to two hundred and fifty thousand U.S. dollars as of the last day of any subsequent
calendar year, shall be reviewed in accordance with the procedure provided in
clause (d) of this sub-rule;
(c) with respect to pre-existing entity accounts referred to in clause (b), only accounts
which are held by,(i) one or more entities which are reportable persons; or
(ii) passive non-financial entity with one or more controlling persons who are
reportable persons,
shall be treated as reportable accounts:
Provided that the accounts held by non-participating financial institutions for which
aggregate payments as provided in clause (h) of sub-rule (1) of rule 114G are
reported shall be treated as reportable accounts;
(d) for pre-existing entity accounts referred to in clause (b) with respect to which
reporting is required, a reporting financial institution, to determine whether the
account is held by one or more reportable persons, or by a passive non-financial
entity with one or more controlling persons who are reportable persons, or by nonparticipating financial institutions, shall apply the following review procedures
namely:(i) to determine whether the entity is a reportable person, the reporting financial
institution shall,(A) review information maintained for regulatory or customer relationship
purposes (including information collected in accordance with the rules
made under the Prevention of Money-laundering Act, 2002 (15 of 2003)) to
determine whether the information indicates that the account holder is a
reportable person.
Explanation.- For the purpose of this sub-clause, information indicating
that the account holder is a resident of any country or territory outside India
as per tax laws of such country or territory includes a place of
35
incorporation or organisation, or an address in a country or territory outside
India;
(B) treat the account as a reportable account, if the information as per item (A)
indicates that the account holder is a reportable person, unless it obtains a
self-certification from the account holder, or reasonably determines based
on information in its possession or that is publicly available, that the
account holder is not a reportable person:
Provided that if the information as per item (A) indicates that the account
holder is an entity not based in the United States of America which is a
financial institution, or the reporting financial institution verifies the
account holder’s Global Intermediary Identification Number, then the
account shall not be treated as a U.S. reportable account;
(ii) treat the account holder as a non-participating financial institution if,(A) the account holder is an Indian financial institution or other partner
jurisdiction financial institution and treated by the United States of America
as a non-participating financial institution;
(B) the account holder, being a financial institution, is not an Indian financial
institution or other partner jurisdiction financial institution, unless the
reporting financial institution,(I) obtains a self-certification from the account holder that it is a financial
institution referred to in sub-clauses (a) to (m) of clause (5) of rule
114F; or
(II) in the case of participating foreign financial institution defined in
Annex II of the FATCA agreement or a financial institution referred to
in sub-clauses (e) to (m) of clause (5) of rule 114F, verifies the account
holder’s Global Intermediary Identification Number;
(iii) the reporting financial institution shall determine whether the account holder is
a passive non-financial entity with one or more controlling persons who are
resident of any country or territory outside India as per tax laws of such country
or territory and in making these determinations the reporting financial
institution shall follow the following procedures, namely:(A) for purposes of determining whether the account holder is a passive nonfinancial entity, the reporting financial institution shall obtain a selfcertification from the account holder to establish its status, unless it has
information in its possession or which is publicly available, based on which
it can reasonably determine that the account holder is an active non-financial
entity or a financial institution other than an investment entity referred to in
sub-clause (B) of clause (c) of Explanation to clause (3) of rule 114F;
(B) for purposes of determining the controlling persons of an account holder, a
reporting financial institution may rely on information collected and
maintained in accordance with the rules made under the Prevention of
Money-laundering Act, 2002 (15 of 2003);
36
(C) for purposes of determining whether a controlling person of a pre-existing
account of passive non-financial entity is a reportable person, a reporting
financial institution may rely on,(I) information collected and maintained in accordance with rules made
under the Prevention of Money-laundering Act, 2002 (15 of 2003) in the
case of pre-existing entity account held by one or more non-financial
entity with an aggregate balance or value which does not exceed an
amount equivalent to one million U.S. dollars; or
(II) a self-certification from the account holder or such controlling person of
the passive non-financial entity with an account balance or value which
exceeds an amount equivalent to one million U.S. dollars;
(D) if any controlling person of a passive non-financial entity is a resident of any
country or territory outside India for tax purposes, the account shall be treated
as a reportable account;
(e) the following additional procedures shall be applicable to pre-existing entity
accounts, namely:(i) review of pre-existing entity accounts with an aggregate account balance or
value that exceeds an amount equivalent to two hundred and fifty thousand U.S.
dollars as on the 30th June, 2014 (in case of a U.S. reportable account), or as the
case may be, 31st December, 2015 (in case of other reportable account) shall be
completed by the 30th June, 2016;
(ii) review of pre-existing entity accounts with an aggregate account balance or
value which does not exceed an amount equivalent to two hundred and fifty
thousand U.S. dollars as on the 30th June, 2014 (in case of a U.S. reportable
account), or as the case may be, 31st December, 2015 (in case of other
reportable account), but exceeds an amount equivalent to two hundred and fifty
thousand U.S. dollars as on the 31st December of a subsequent year, shall be
completed within the calendar year following the year in which the aggregate
account balance or value exceeds an amount equivalent to two hundred and
fifty thousand U.S. dollars;
(iii) if there is a change of circumstances with respect to a pre-existing entity
account that causes the reporting financial institution to know, or have reason to
know, that the self-certification or other documentation associated with the
account is incorrect or unreliable, the reporting financial institution shall redetermine the status of the account in accordance with the procedures set forth
in clause (d) of this sub-rule.
(6) The following procedures shall apply for purposes of identifying reportable accounts and
accounts held by non-participating financial institutions among new entity accounts, namely:(a) a reporting financial institution, to determine whether the new entity account is a
reportable account, shall apply the following review procedures namely:(i) determine whether the entity is a reportable person and for that the reporting
financial institution shall,-
37
(A) obtain a self-certification, which may be part of the account opening
documentation, that allows the reporting financial institution to determine
the account holder’s residence or residences for tax purposes and confirm
the reasonableness of such self-certification based on the information
obtained by the reporting financial institution in connection with the
opening of the account, including any documentation collected in
accordance with the rules made under the Prevention of Money-laundering
Act, 2002 (15 of 2003):
Provided that if the entity certifies that it has no residence for tax purposes,
the reporting financial institution may rely on the address of the principal
office of the entity to determine the residence of the account holder;
(B) treat the account as a reportable account, if the information as per item (A)
indicates that the account holder is a reportable person, unless it reasonably
determines based on information in its possession or which is publicly
available, that the account holder is not a reportable person:
Provided that if the information as per item (A) indicates that the account
holder is an Indian financial institution, or partner jurisdiction financial
institution, which is not a non-participating financial institution or a
participating foreign financial institution or a non-reporting financial
institution then the account shall not be treated as a U.S. reportable account;
(ii) determine whether the account holder is a passive non-financial entity with one
or more controlling persons who are reportable persons and in making these
determinations the reporting financial institution shall follow the following
procedures, namely:(A) for purposes of determining whether the account holder is a passive nonfinancial entity, the reporting financial institution shall rely on a selfcertification from the account holder to establish its status, unless it has
information in its possession or that is publicly available, based on which it
can reasonably determine that the account holder is not a passive nonfinancial entity;
(B) for purposes of determining the controlling persons of an account holder, a
reporting financial institution may rely on information collected and
maintained in accordance with the rules made under the Prevention of
Money-laundering Act, 2002 (15 of 2003);
(C) for purposes of determining whether a controlling person of a passive nonfinancial entity is a reportable person, a reporting financial institution may
rely on a self-certification from the account holder or such controlling
person;
(b) the reporting financial institution shall determine whether the account holder is a
non-participating financial institution and in such case any payment to the account
holder shall be reported as per clause (h) of sub-rule (1) of rule 114G.
38
(7) The following additional procedures shall apply in implementing the due diligence
requirement specified in sub-rules (1) to (6), namely:(a) a reporting financial institution may not rely on a self-certification or documentary
evidence if the reporting financial institution knows or has reason to know that the
self-certification or documentary evidence is incorrect or unreliable;
(b) a reporting financial institution may presume that an individual beneficiary (other
than the owner) of a cash value insurance contract or an annuity contract receiving a
death benefit is not a reportable person and may treat such financial account as other
than a reportable account unless the reporting financial institution has actual
knowledge, or reason to know, that the beneficiary is a reportable person:
Provided that if a reporting financial institution has actual knowledge, or reason to
know, that the beneficiary is a reportable person, it shall follow the procedures
specified in clause (b) of sub-rule (3);
Explanation.- For the purposes of this clause, a reporting financial institution shall
be deemed to have reason to know that a beneficiary of a cash value insurance
contract or an annuity contract is a reportable person if the information collected by
the reporting financial institution and associated with the beneficiary contains
indicia specified in clause (b) of sub-rule (3).
(c) the following procedures relating to aggregation of account balance and currency
shall apply, namely:(i) for purposes of determining the aggregate balance or value of financial accounts
held by an individual, a reporting financial institution shall be required to
aggregate all financial accounts maintained by it, or by a related entity, but only
to the extent that the computerised systems of that reporting financial institution
links the financial accounts by reference to a data element such as client number
or taxpayer identification number, and allows account balances or values to be
aggregated;
(ii) for purposes of determining the aggregate balance or value of financial
accounts held by an entity, a reporting financial institution shall be required to
take into account all financial accounts which are maintained by it, or by a
related entity, but only to the extent that the computerised systems of that
reporting financial institution links the financial accounts by reference to a data
element such as client number or taxpayer identification number, and allows
account balances or values to be aggregated;
(iii) for purposes of determining the aggregate balance or value of financial
accounts held by a person to determine whether a financial account is a high
value account, a reporting financial institution shall also be required, in the case
of any financial accounts that a relationship manager knows, or has reason to
know, are directly or indirectly owned, controlled, or established (other than in
a fiduciary capacity) by the same person, to aggregate all such accounts;
(iv) for the purposes of rules 114F, 114G and this rule, any account maintained in
rupees or in any permissible currency (other than the United States Dollar) as
39
designated by the Reserve Bank of India shall be converted to United States
Dollar at the end of the reporting period as per the reference rates of the
Reserve Bank of India and such converted amount in the United States Dollar
shall be used for determining the balance or value of a financial account
provided in such rules.
Explanation 1.- For the purposes of this clause each holder of a jointly held financial
account shall be attributed the entire balance or value of the jointly held financial
account for purposes of applying the aggregation requirements.
(8) In case of a U.S. reportable account opened on or after the 1st July, 2014 but before the
date of entry into force of FATCA agreement, notwithstanding the due diligence procedures
specified in sub-rule (4) or sub-rule (6) of this rule for new accounts, the reporting financial
institution may, in lieu of the procedures specified in the said sub-rules, apply the following
alternative procedures, namely:(a) within one year after the date of entry into force of the FATCA agreement, reporting
financial institutions shall,(i) with respect to a new individual account opened on or after the 1st July, 2014 but
before the date of entry into force of FATCA agreement, request the selfcertification specified in sub-rule (4) and confirm the reasonableness of such selfcertification consistent with the procedures specified in sub-rule (4); and
(ii) with respect to a new entity account opened on or after the 1st July, 2014 but
before the date of entry into force of FATCA agreement, perform the due diligence
procedures specified in sub-rule (6) and request for information as necessary to
document the account, including any self-certification, required under sub-rule (6);
(b) the reporting financial institution shall report on any new account which is
identified pursuant to clause (a) of this sub-rule as a U.S. reportable account or as an
account held by a non-participating financial institution, as applicable, by the date
which is the later of,(i) the 31st of May next following the date on which the account is identified as a
U.S. reportable account or as an account held by a non-participating financial
institution, as applicable; and
(ii) forty-five days after the account is identified as a U.S. reportable account or as
an account held by a non-participating financial institution, as applicable:
Provided that the information required to be reported with respect to such a new
account shall be information which would have been reportable had the new
account been identified as a U.S. reportable account or as an account held by a nonparticipating financial institution, as applicable, as of the date the account was
opened;
(c) by the date that is one year after the date of entry into force of the FATCA
agreement, reporting financial institutions shall close any new account described in
clause (a) for which it was unable to collect the required self-certification or other
documentation in accordance with the procedure specified in clause (b):
Provided that in addition, by such date, the reporting financial institutions shall,40
(i) with respect to such closed accounts which prior to such closure were new
individual accounts (without regard to whether such accounts were high value
accounts), perform the due diligence procedure specified in clause (c) of sub-rule
(3), or
(ii) with respect to such closed accounts which prior to such closure were new entity
accounts, perform the due diligence procedures specified in sub-rule (5); and
(d) the reporting financial institution shall report the information specified in rule 114G
in respect of any closed account which is identified under clause (c) as a U.S.
reportable account or as an account held by a non-participating financial institution,
as applicable, by the date that is the later of,(i) the 31st of May next following the date on which the account is identified as a
U.S. reportable account or as an account held by a non-participating financial
institution, as applicable; and
(ii) forty-five days after the account is identified as a U.S. reportable account or as
an account held by a non-participating financial institution, as applicable:
Provided that in respect of all new entity accounts or a clearly identified group of such
accounts which are U.S. reportable accounts opened on or after the 1st July, 2014, and before
the 1st January, 2015 the reporting financial institution may, in lieu of the procedure specified
in clauses (a) to (d), treat such accounts as pre-existing entity accounts and apply the due
diligence procedure related to pre-existing entity accounts specified in sub-rule (5) without
regard to the account balance or value threshold specified in clause (a) of sub-rule (5).’
3. In the said rules, in Appendix-II, after Form 61A the following form shall be inserted,
namely:-
41
“FORM NO. 61B
[See sub-rule (8) of rule 114G]
Statement of Reportable Account under sub-section (1) section 285BA of the Income-tax Act, 1961
(see instructions for guidance)
PART A: STATEMENT DETAILS
(This information should be provided for each Statement of Reports submitted together)
A.1
REPORTING ENTITY DETAILS
A.1.1
Reporting Entity Name
A.1.2
ITDREIN
A.1.3
Global Intermediary Identification
Number (GIIN)
A.1.4
Registration Number
A.1.5
Reporting Entity Category
A.2
STATEMENT DETAILS
A.2.1
Statement Type
A.2.2
Statement Number
A.2.3
Original Statement Id
A.2.4
Reason for Correction
A.2.5
Statement Date
A.2.6
Reporting Period
A.2.7
Report Type
A.2.8
Number of Reports
A.3
PRINCIPAL OFFICER DETAILS
A.3.1
Principal Officer Name
A.3.2
Principal Officer Designation
A.3.3
Principal Officer Address
A.3.4
City / Town
A.3.5
Postal Code
A.3.6
State Code
Insert 2 character code
A.3.7
Country Code
Insert 2 character code
A.3.8
Telephone
A.3.9
Mobile
A.3.10
Fax
A.3.11
Email
.
Insert 2 character code
Insert 2 character code
Insert 1 character code
Insert 1 character code
42
PART B: REPORT DETAILS
(This information should be provided for each Account being reported)
B.1
ACCOUNT DETAILS (To be provided for each account being reported)
B.1.1
Report Serial Number
B.1.2
Original Report Serial Number
B.1.3
Account Type
B.1.4
Account Number
B.1.5
Account Number Type
B.1.6
Account Holder Name
B.1.7
Account Status
Insert 1 character code
B.1.8
Account Treatment
Insert 1 character code
B.1.9
Self- certification
Insert 1 character code
B.1.10
Documentation Status
Insert 1 character code
B.1.11
Date of closure of account, if closed during the
year
B.2
BRANCH DETAILS
B.2.1
Branch Number Type
B.2.2
Branch Reference Number
B.2.3
Branch Name
B.2.4
Branch Address
B.2.5
City Town
B.2.6
Postal Code
B.2.7
State Code
Insert 2 character code
B.2.8
Country Code
Insert 2 character code
B.2.9
Telephone
B.2.10
Mobile
B.2.11
Fax
B.2.12
Email
B.3
ACCOUNT SUMMARY
B.3.1
Account balance or value at the end of
reporting period
B.3.2
Aggregate gross interest paid or credited
B.3.3
Aggregate gross dividend paid or credited
B.3.4
Gross proceeds from sale of property
B.3.5
Aggregate gross amount of all other income
paid or credited
Insert 2 character code
Insert 1 character code
Insert 1 character code
43
B.3.6
Aggregate gross amount credited
B.3.7
Aggregate gross amount debited
B.4
INDIVIDUAL DETAILS (To be provided for individual account holder )
B.4.1
Name
B.4.2
Customer ID
B.4.3
Father’s Name
B.4.4
Spouse’s Name
B.4.5
Gender
B.4.6
PAN
B.4.7
Aadhaar Number
B.4.8
Identification Type
B.4.9
Identification Number
B.4.10
Occupation Type
B.4.11
Occupation
B.4.12
Birth Date
B.4.13
Nationality
Insert 2 character code
B.4.14
Country of Residence as per tax laws
Insert 2 character code
B.4.15
Place of Birth
B.4.16
Country of Birth
B.4.17
Tax Identification Number (TIN) allotted
by tax resident country
B.4.18
TIN Issuing Country
Insert 2 character code
B.4.19
Address Type
Insert 2 character code
B.4.20
Address
B.4.21
City / Town
B.4.22
Postal Code
B.4.23
State Code
Insert 2 character code
B.4.24
Country Code
Insert 2 character code
B.4.25
Mobile/Telephone Number
B.4.26
Other Contact Number
B.4.27
Remarks
Insert 1 character code (Refer Instructions)
Insert 1 character code
Insert 1 character code
Insert 2 character code
44
B.5
LEGAL ENTITY DETAILS (To be provided for entity account holder)
B.5.1
Name of the Entity
B.5.2
Customer ID
B.5.3
Account Holder Type for US
Reportable Person
Insert 2 character code
B.5.4
Account Holder Type for Other
Reportable Person
Insert 2 character code
B.5.5
Entity Constitution Type
Insert 1 character code
B.5.6
Date of Incorporation
B.5.7
Nature of Business
B.5.8
PAN
B.5.9
Identification Type
B.5.10
Identification No.
B.5.11
Identification issuing Country
B.5.12
Place of Incorporation
B.5.13
Country of Incorporation
Insert 2 character code
B.5.14
Country of Residence as per tax laws
Insert 2 character code
B.5.15
Tax Identification Number (TIN)
allotted by tax resident country
B.5.16
TIN Issuing Country
B.5.17
Address Type
B.5.18
Address
B.5.19
City / Town
B.5.20
Postal Code
B.5.21
State Code
Insert 2 character code
B.5.22
Country Code
Insert 2 character code
B.5.23
Mobile/Telephone Number
B.5.24
Other Contact Number
B.5.25
Remarks
Insert 1 character code
Insert 2 character code
Insert 2 character code
Insert 1 character code
45
B.6
CONTROLLING PERSON DETAILS (To be provided for each controlling person of the entity)
B.6.1
Controlling Person Type
B.6.2
Name
B.6.3
Customer ID
B.6.4
Father’s Name
B.6.5
Spouse’s Name
B.6.6
Gender
B.6.7
PAN
B.6.8
Aadhaar Number
B.6.9
Identification Type
B.6.10
Identification Number
B.6.11
Occupation Type
B.6.12
Occupation
B.6.13
Birth Date
B.6.14
Nationality
Insert 2 character code
B.6.15
Country of Residence as per tax laws
Insert 2 character code
B.6.16
Place of Birth
B.6.17
Country of Birth
B.6.18
Tax Identification Number (TIN)
allotted by tax resident country
B.6.19
TIN Issuing Country
Insert 2 character code
B.6.20
Address Type
Insert 2 character code
B.6.21
Address
B.6.22
City / Town
B.6.23
Postal Code
B.6.24
State Code
Insert 2 character code
B.6.25
Country Code
Insert 2 character code
B.6.26
Mobile/Telephone Number
B.6.27
Other Contact Number
B.6.28
Remarks”.
Insert 3 character code
Insert 1 character code
Insert 1 character code
Insert 1 character code
Insert 2 character code
46
[Notification no. 62/2015] [F. No. 142/21/2015 TPL]
[Gaurav Kanaujia]
Director to Government of India
Note:- The principal rules were published vide notification S.O. number 969 (E), dated 26th
March, 1962 and last amended by Income-tax (10th Amendment) Rules, 2014 vide
notification S.O. number 2070(E), dated the 29th July, 2015.
47
Instructions to Form 61B
General Instructions
The requirement field for each data element indicates whether the element is validation or optional in the schema.
Validation
“Validation” elements MUST be present for ALL data records in a file and an automated
validation check will be undertaken. The Sender should do a technical check of the data
file content using XML tools to make sure all “Validation” elements are present and if they
are not, the sender should correct the file. The Income-tax Department will also do so and
if incorrect, will reject the file.
(Optional) Mandatory
An optional element that is required for reporting depending on availability of information
or legal factors. These elements may be present in most (but not all) circumstances. The
Income-tax Department will publish separate validation rules to check these.
Optional
An optional element specified in form
Optional*
An optional element specified only in instructions. May be reported if available
Specific Instructions
S. No.
Element
Description
Requirement
A.1.1
Reporting
Entity Name
Complete name of the reporting entity.
Validation
A.1.2
ITDREIN
(Income-tax
Department
Reporting
Entity
Identification
Number)
ITDREIN is the Unique ID issued by ITD which will be communicated
by ITD after the registration of the reporting entity with ITD. The
ITDREIN is a 16-character identification number in the format
XXXXXXXXXX.YYYYY where XXXXXXXXXX is the PAN or TAN of the
reporting entity and YYYYY is a sequentially generated number. The
reporting Entity may use a dummy number (PAN+99999 or
TAN+99999) till the ITDREIN is communicated.
Validation
A.1.3
GIIN
GIIN means the Global Intermediary Identification Number which is a
19-character identification number in the format
XXXXXX.XXXXX.XX.XXX assigned to the reporting entity by USA.
Validation
A.1.4
Registration
Number
This number is the registration number or any number used in
correspondence with the regulator of the financial institution.
Optional
A.1.5
Reporting
Entity
Category
Category of reporting entity are:
Validation

DI - Depository Institution

CI- Custodial Institution

IE- Investment Entity

IC - Specified Insurance Company
 OT- Other
In case if a Reporting Entity is engaged in more than one category of
activities, it needs to submit different statements for different category
of activities. For example if a reporting entity is maintaining certain
accounts as depository institution and certain other accounts as
custodial institution, it needs to submit two different statements.
1
S. No.
Element
Description
Requirement
A.2.1
Statement
Type
Type of Statement submitted. Permissible values are:
Validation

NB – New Statement containing new information

CB – Correction Statement containing corrections for
previously submitted information

TD - Test Data
 ND - No Data to report
One Statement can contain only one type of Statement. Even if
missing information has to be supplied, the complete report has to be
submitted instead of an incremental report.
A.2.2
Statement
Number
Statement Number is a free text field capturing the sender’s unique
identifying number (created by the sender) that identifies the particular
Statement being sent. The identifier allows both the sender and
receiver to identify the specific Statement later if questions or
corrections arise. After successful submission of the Statement to ITD,
a new unique Statement ID will be allotted for future reference. The
reporting entities should maintain the linkage between the Statement
Number and Statement ID.
Example of the statement number is 2015/01.
Validation
A.2.3
Original
Statement Id
In case if the original statement is being replaced by this statement,
statement ID of the original Statement which is being replaced deleted
or referred by reports in the current Statement.
Validation
In case the Statement is new and unrelated to any previous Statement,
mention ‘0’ here.
A.2.4
Reason of
Correction
Reason for revision to be stated when the original Statement is
corrected.
Permissible values are:

A - Acknowledgement of original Statement had errors which are
being resolved

B - Errors in original Statement are being corrected suo-motu

C - The correction report is on account of additional information
being submitted

N - Not applicable as this is a new statement/test data/ there is no
data to report

Z - Other reason
Validation
A.2.5
Statement
Date
This identifies the date and time when the Statement was compiled.
This element will be automatically populated by the host system. The
format for use is YYYY-MM-DD’T’hh:mm:ss. Fractions of seconds are
not used. Example: 2015-03-15T09:45:30.
Validation
A.2.6
Reporting
Period
This identifies the last day of the reporting period in YYYY-MM-DD
format. For example, if reporting information for the accounts or
payments made in calendar year 2014, the field would read, “2014-1231”
Validation
A.2.7
Report Type
Type of report in the Statement. One Statement can contain only one
type of report. Permissible values are:
Validation

01 - Report of US reportable accounts under Rule 114G

02 - Report of other reportable accounts under Rule 114G
A.2.8
Number of
Reports
Number of Reports in Part B.
Validation
A.3.1
Principal
Officer Name
Name of the Principal Officer. Refer to the registration requirement
under Income-tax Act and Rules
Validation
2
S. No.
Element
Description
Requirement
A.3.2
Principal
Officer
Designation
Designation of the Principal Officer.
Validation
A.3.3
Principal
Officer
Address
Complete address consisting of house number, building name, street,
locality, city, state etc.
Validation
A.3.4
City Town
Name of City, Town or Village
Validation
A.3.5
State Code
The two digit state code has to be mentioned as per Indian Motor
Vehicle Act 1988. If state code is not available, use XX.
Validation
A.3.6
Postal Code
In case of India, the 6 digit Pin code as per India Posts has to be
mentioned. In case of countries outside India, respective code may be
used. If Pin code is not available, use XXXXXX.
Validation
A.3.7
Country Code
The Country Code as per ISO 3166 has to be mentioned. Use IN for
India. If Country Code is not available, use XX
Validation
A.3.8
Telephone
Telephone number in format STD Code-Telephone number. (Example
0120-2894016)
Validation
A.3.9
Mobile
Contact Mobile number. Please do not add “0” before the number
Validation
A.3.10
Fax
Fax number in format STD Code-Telephone number. (Example 01202894016)
Validation
A.3.11
Email
E-mail of the Principal Officer
Validation
B.1.1
Report Serial
Number
The number uniquely represents a report within a Statement. The
Report Serial Number should be unique within the Statement. This
number along with Statement ID will uniquely identify any report
received by ITD.
Validation
B.1.2
Original
Report Serial
Number
The Report Serial Number of the original report that has to be replaced
or deleted. This number along with Original Statement ID will uniquely
identify the report which is being corrected.
In case there is no correction of any report, mention ‘0’ here.
Validation
B.1.3
Account Type
Type of account. Permissible values are:
Validation

BS - Savings Account

BC - Current Account

BR - Cash Credit/Overdraft Account

BD - Credit Card Account

BP - Prepaid Card Account

BL - Loan Account

BT - Term Deposit Account

IL - Term Insurance Policy

IE - Endowment Policy

IA - Annuity Policy (Excluding ULIP)

IU - ULIP Policy

IB – Money Back Policy

IW – Whole Life Policy

ST - Trading Account

MF – Mutual Fund Folio

DB - Beneficiary Client Account

DH - Beneficiary House Account

DC - Clearing Member Pool Account

ZZ - Others

XX - Not Categorised
3
S. No.
Element
Description
Requirement
B.1.4
Account
Number
Provide the account number used by the financial institution to identify
the account. If the financial institution does not have an account
number then provide the functional equivalent unique identifier used by
the financial institution to identify the account.
Validation
B.1.5
Account
Number Type
Account number type. Permissible values are:
Validation

01 - International Bank Account Number

02 - Other Bank Account Number

03 - International Securities Information Number

04 - Other Securities Information Number
 05 - Any other type of account information
Indian banks may use option 02 above.
B.1.6
Account
Holder Name
Name of first/sole account holder.
Validation
B.1.7
Account
Status
Status of the account. Permissible values are:
Validation
B.1.8
B.1.9
B.1.10
B.1.11
Account
Treatment
Selfcertification
Documentatio
n Status
Date of
closure of
account, if
closed during
the reporting
period

A – Active: Account is in regular use/policy in force

I – Inactive: Account is not in regular use/ policy lapsed

D – Dormant: As defined by regulator (e.g. There is no
transaction in the account for two years, paid up policy lapsed
after paying premiums for 3 or more years)

S – Suspended: Account/policy is temporarily suspended

F – Frozen: Account/policy is frozen (including case of debit
freeze)

C- Closed: Account is closed/policy foreclosed, surrendered,
death or maturity claim paid

Z – Others: Not listed above

X - Not categorized: The information is not available.
Permissible values are:
Mandatory

N: New account as per Rule 114H

P: Pre-existing as per Rule 114H

X: Not applicable
Permissible values are:

Y: Yes

N: No

X: Not applicable
Mandatory
Undocumented as per Rule 114H(3) for pre-existing individual account.
If the due diligence fails to establish an indicium and the attempt to
obtain the self-certification or documentary evidence is not successful,
the reporting financial institution must report the account as an
undocumented account.
Permissible values are:

D - Documented

U - Undocumented
Date of closure of account. This information is mandatory if the
account was closed during the reporting period
4
Validation
(Optional)
Mandatory
S. No.
Element
Description
Requirement
B.2.1
Branch
Number Type
The type of branch reference number used. Entities with no Branch
reference number can use self-generated numbers to uniquely identify
the branch.
Permissible values are:
Validation

R – Regulator Issued

B – BIC

I – IFSC

S – Self generated

Z – Other sources
 X – Self Generated
IFSC is compulsory in case of banking institutions.
B.2.2
Branch
Reference
Number
The unique number to uniquely identify the branch. Reporting Financial
Institution can use self-generated numbers to uniquely identify the
branch.
Validation
B.2.3
Branch Name
Name of Branch linked to the account. This could be the home or
linked branch.
Validation
B.2.4
Branch
Address
Complete address consisting of house number, building name, street,
locality, city, state etc.
Validation
B.2.5
City / Town
Name of City, Town or Village
Validation
B.2.6
Postal Code
In case of India, the 6 digit Pin code as per India Posts has to be
mentioned. In case of countries outside India, respective code may be
used. If Pin code is not available, use XXXXXX.
Validation
B.2.7
State Code
The two digit state code has to be mentioned as per Indian Motor
Vehicle Act 1988. If state code is not available, use XX.
Validation
B.2.8
Country Code
The Country Code as per ISO 3166 has to be mentioned. Use IN for
India. If Country Code is not available, use XX
Validation
B.2.9
Telephone
Telephone number in format STD Code-Telephone number. (Example
0120-2894016)
Optional
B.2.10
Mobile
Contact Mobile number. Please do not add “0” before the number
Optional
B.2.11
Fax
Fax number in format STD Code-Telephone number. (Example 01202894016)
Optional
B.2.12
Email
E-mail of the Branch head
Optional
B.3.1
Account
balance or
value at the
end of
reporting
period
The account balance or value of the reported financial account as on
the last day of the reporting period. In case if the account was closed
during the reporting period then the balance immediately before
closure. (Mandatory for all account types)
The cash value insurance or annuity contract is the balance or value of
the account. For Debt or equity accounts, the account balance is the
value of the debt or equity interest that the account holder has in the
financial institution.
Validation
B.3.2
Aggregate
gross interest
paid or
credited
The aggregate gross amount of interest paid or credited to the account
during the period.
This information is mandatory for depository account and custodial
account.
(Optional)
Mandatory
B.3.3
Aggregate
gross dividend
paid or
credited
The aggregate gross amount of dividend paid or credited to the
account during the period. This information can be collected from other
regulated entity.
This information is mandatory for custodial account.
(Optional)
Mandatory
5
S. No.
Element
Description
Requirement
B.3.4
Gross
proceeds from
sale of
property
The gross proceeds from sale or redemption of property paid or
credited to the account during the period with respect to which the
reporting entity acted as a custodian, broker, nominee, or otherwise as
an agent for the account holder.
This information is mandatory for custodial account.
(Optional)
Mandatory
B.3.5
Aggregate
gross amount
of all other
income paid or
credited to the
account
The aggregate gross amount of all other income paid or credited to the
account during the period.
(Optional)
Mandatory
B.3.6
Aggregate
gross amount
credited to the
account
Aggregate gross amount credited to the account during the period.
Optional
B.3.7
Aggregate
gross amount
debited to the
account
Aggregate gross amount debited to the account during the period.
Optional
B.4.1
Name
Name of the Individual in whose name the account stands.
This will be mandatory for accounts of individuals.
Validation
Preceding Title
Title of the person such as “His Excellency”, “Estate of the late”.
Optional*
Title
Greeting title of the reported person such as Mr., Dr., Mrs., Herr etc.
Can have multiple titles
Optional*
First Name
First name of the person. In case if the first name is not available, no
first name or NFN may be used here.
Optional*
Middle name
Middle name (essential part of the name for many nationalities). Eg.
Shakti in “Nivetha Shakti Shantha”. Can have multiple middle names.
Optional*
Name prefix
De, van,van de, von, etc. Example: Derick de Clarke
Optional*
Last Name
Represents the position of the name in a name string.
Can be Given name, Forename, Christian name, Surname, Family
name etc.
In case of a company, this field can be used for the company name.
Optional*
Generation
Identifier
The identifier of generation such as Jnr, Thr, III
Optional*
Suffix
Could be compressed initials such as: Phd, VC, QC
Optional*
General Suffix
Deceased, retired etc.
Optional*
Name Type
It is possible for an individual or entity to have several names. This is a
qualifier to indicate the type of a particular name. Such types include
nick names (“nick”), names under which a party does business (“dba” a
short name for the entity, or a name that is used for public
acquaintance instead of the official business name) etc. The possible
values are:
Optional*
This information is mandatory for custodial account.

N1= SMFAliasOrOther

N2= indiv

N3= alias

N4= nick

N5= aka

N6= dba

N7= legal

N8= atbirth
6
S. No.
Element
Description
Requirement
B.4.2
Customer ID
Customer ID/Number allotted by the reporting entity. This information
is mandatory if Customer ID/Number is allotted.
(Optional)
Mandatory
B.4.3
Father's Name
Name of the father. This information is mandatory if valid PAN is not
reported.
Optional
B.4.4
Spouse’s
Name
Name of the spouse, if available
Optional
B.4.5
Gender
Permissible values are:
Validation

M - Male

F - Female

O - Others
B.4.6
PAN
Permanent Account Number issued by Income-tax Department.
This information is mandatory if PAN is required to be collected as per
regulatory guidelines.
(Optional)
Mandatory
B.4.7
Aadhaar
Number
Aadhar number issued by UIDAI
Optional
B.4.8
Identification
Type
Document submitted as proof of identity of the individual. Permissible
values are:
Validation

A - Passport

B - Election Id Card

C - PAN Card

D - ID Card

E - Driving License

G - UIDAI Letter

H - NREGA job card

Z – Others

X – Not Categorised
B.4.9
Identification
Number
Number mentioned in the identification document. This information is
mandatory if PAN or Aadhar number is not reported
(Optional)
Mandatory
B.4.10
Occupation
Type
Permissible values are:
Validation

S - Service

B - Business

O - Others

X - Not Categorised
B.4.11
Occupation
Please specify occupation of the individual.
Optional
B.4.12
Birth Date
This data element identifies the date of birth of the Individual Account
Holder. The data format is DD/MM/YYYY.
This information is mandatory if valid PAN is not reported.
(Optional)
Mandatory
B.4.13
Nationality
2 character Country Code (ISO 3166)
Validation
B.4.14
Country of
Residence as
per tax laws
This data element describes the tax residence country code(s) for the
individual being reported upon and must be present in all data records.
The Country Code as per ISO 3166 has to be mentioned. If the
individual is certified or treated as tax resident in more than one
jurisdiction then this element may be repeated.
Validation
B.4.15
Place of Birth
Place of Birth.
(Optional)
Mandatory
City Sub entity
of birth
City Sub entity of birth
Optional*
7
S. No.
Element
Description
Requirement
B.4.16
Country of
Birth
This data element describes the Country of birth for the individual. The
Country Code as per ISO 3166 has to be mentioned.
This information is mandatory for foreign national or non-resident.
(Optional)
Mandatory
Former
Country Name
Former name of the country
Optional*
B.4.17
Foreign Tax
Identification
Number (TIN)
allotted by tax
resident
country
This data element identifies the Tax Identification Number (TIN) used
by the residence country of the reported account holder to identify the
Individual Account Holder. In case if there is no TIN, provide functional
equivalent.
This information is mandatory for foreign national or non-resident.
(Optional)
Mandatory
B.4.18
TIN Issuing
Country
This attribute identifies the jurisdiction that issued the TIN. The
Country Code as per ISO 3166 has to be mentioned. If Country Code
is not available, use XX.
This information is mandatory for foreign national or non-resident in
certain situations.
(Optional)
Mandatory
B.4.19
Address Type
Indicates the type of the address. Permissible values are:
Validation
B.4.20
Address

1- Residential Or Business

2 - Residential

3 - Business

4 – Registered Office

5 – Unspecified
Complete address consisting of house number, building name, street,
locality, city, state etc.
Validation
Street
Optional*
Building
Identifier
Optional*
Suite Identifier
Optional*
Floor Identifier
Optional*
District Name
Optional*
POB
Optional*
B.4.21
City / Town
Name of City, Town or Village
Validation
B.4.22
Postal Code
In case of India, the 6 digit Pin code as per India Posts has to be
mentioned. In case of countries outside India, respective code may be
used. If Pin code is not available, use XXXXXX.
Validation
B.4.23
State Code
The two digit state code has to be mentioned as per Indian Motor
Vehicle Act 1988. In case of countries outside India, or if state code is
not available, use XX.
Validation
B.4.24
Country Code
The Country Code as per ISO 3166 has to be mentioned. Use IN for
India. If Country Code is not available, use XX
Validation
B.4.25
Mobile/Teleph
one Number
Primary Telephone (STD Code-Telephone number) or mobile number
(Please do not add “0” before the number)
Optional
B.4.26
Other Contact
Number
Other Telephone (STD Code-Telephone number) or mobile number
(Please do not add “0” before the number)
Optional
B.4.27
Remarks
Any additional information related to individual
Optional
B.5.1
Name of the
Entity
Name of the Legal Entity
Validation
Name Type
Name type of the legal entity
Optional*
8
S. No.
Element
Description
Requirement
B.5.2
Customer ID
Customer ID/Number allotted by the reporting entity. This information
is mandatory if Customer ID/Number is allotted.
(Optional)
Mandatory
B.5.3
Account
Holder Type
for US
Reportable
Person
The permissible values are:
Validation
B.5.4
B.5.5
B.5.6
Account
Holder Type
for Other
Reportable
Person
Entity
Constitution
Type

F1 - Owner-Documented FI with specified US owner(s)

F2 - Passive Non-Financial Entity with substantial US
owner(s)

F3 - Non-Participating FFI

F4 - Specified US Person

F5 - Direct Reporting NFFE

XX –Not Applicable
The permissible values are:
Validation

C1- Passive Non-Financial Entity with – one or more
controlling person that is a Reportable Person

C2 - Other Reportable Person

C3 - Passive Non-Financial Entity that is a CRS Reportable

XX – Not Applicable
Permissible values are:
Validation

A - Sole Proprietorship

B - Partnership Firm

C - HUF

D - Private Limited Company

E- Public Limited Company

F- Society

G- AOP/BOI

H - Trust

I – Liquidator

J – Limited Liability Partnership

K- Artificial Juridical Person

Z - Others

X – Not Categorised.
Date of
Incorporation
To be reported in DD/MM/YYYY format. This information is mandatory
if valid PAN is not reported.
(Optional)
Mandatory
Nature of
Business
Nature of Business. This information is mandatory if it is captured.
(Optional)
Mandatory
B.5.7
Business
Code
Business Code as per Income Tax Return form
Optional*
B.5.8
PAN
Permanent Account Number issued by Income-tax Department.
This information is mandatory if PAN is required to be collected as per
regulatory guidelines.
(Optional)
Mandatory
B.5.9
Identification
Type
This Attribute defines the type of identification number being sent
Validation

T- TIN

C- Company Identification Number

G- US GIIN

E- Global Entity Identification Number (EIN)
 O - Other
This data element can be repeated if a second Identification is present
B.5.10
Identification
No.
This data element provides the identification number used.
9
(Optional)
Mandatory
S. No.
Element
Description
Requirement
B.5.11
Identification
issuing
Country
2 character Country Code (ISO 3166).
(Optional)
Mandatory
B.5.12
Place of
Incorporation
Place of Incorporation.
(Optional)
Mandatory
B.5.13
Country of
Incorporation
This data element describes the Country of Incorporation for the entity.
The Country Code as per ISO 3166 has to be mentioned
(Optional)
Mandatory
B.5.14
Country of
Residence as
per tax laws
This data element describes the tax residence country for the entity
being reported upon and must be present in all data records. The
Country Code as per ISO 3166 has to be mentioned. If the entity is
certified or treated as tax resident in more than one jurisdiction then
this element may be repeated.
(Optional)
Mandatory
B.5.15
Tax
Identification
#
Number (TIN)
allotted by tax
resident
country
This data element identifies the Tax Identification Number (TIN) used
by the residence country of the reported account holder to identify the
Individual Account Holder. In case if there is no TIN, provide functional
equivalent.
(Optional)
Mandatory
B.5.16
TIN Issuing
#
Country
This attribute identifies the jurisdiction that issued the TIN. (Mandatory
for Foreign national or Non Resident). The Country Code as per ISO
3166 has to be mentioned.
(Optional)
Mandatory
B.5.17
Address Type
Indicates the type of the address. Permissible values are:
B.5.18
Address

1- Residential Or Business

2 - Residential

3 - Business

4 – Registered Office

5 – Unspecified
Complete address consisting of house number, building name, street,
locality, city, state etc.
Validation
Street
Optional*
Building
Identifier
Optional*
Suite Identifier
Optional*
Floor Identifier
Optional*
District Name
Optional*
POB
Optional*
B.5.19
City / Town
Name of City, Town or Village
Validation
B5.20
Postal Code
In case of India, the 6 digit Pin code as per India Posts has to be
mentioned. In case of countries outside India, respective code may be
used. If Pin code is not available, use XXXXXX.
Validation
B.5.21
State Code
The two digit state code has to be mentioned as per Indian Motor
Vehicle Act 1988. If state code is not available, use XX.
Validation
B.5.22
Country Code
The Country Code as per ISO 3166 has to be mentioned. Use IN for
India. If Country Code is not available, use XX
Validation
B.5.23
Mobile/Teleph
one Number
Primary Telephone (STD Code-Telephone number) or mobile number
(Please do not add “0” before the number)
Optional
B.5.24
Other Contact
Number
Other Telephone (STD Code-Telephone number) or mobile number
(Please do not add “0” before the number)
Optional
B.5.25
Remarks
Any additional information related to Entity.
Optional
10
S. No.
Element
Description
Requirement
B.6.1
Controlling
Person Type
Type of the controlling person:
Permissible values are:
Mandatory
B.6.2

C01-CP of legal person-ownership

C02-CP of legal person-other means

C03-CP of legal person-senior managing official

C04-CP of legal arrangement-trust-settlor

C05-CP of legal arrangement--trust-trustee

C06-CP of legal arrangement--trust-protector

C07-CP of legal arrangement--trust-beneficiary

C08-CP of legal arrangement--trust-other

C09--CP of legal arrangement—Other-settlor equivalent

C10--CP of legal arrangement—Other-trustee equivalent

C11--CP of legal arrangement—Other-protector equivalent

C12--CP of legal arrangement—Other-beneficiary equivalent

C13--CP of legal arrangement—Other-other equivalent

C14--Unknown
Name
Name of the Controlling Person i.e. natural persons who exercise
control over an entity and includes a beneficial owner as determined
under to sub-rule (3) of rule 9 of Prevention of Money-laundering
(Maintenance of Records) Rules, 2005.
Reporting of Controlling person is mandatory for accounts of Passive
Non-Financial Entity (F2, C1)
Validation
Preceding Title
Title of the person such as “His Excellency”, “Estate of the late”.
Optional*
Title
Greeting title of the reported person such as Mr., Dr., Mrs., Herr etc.
Can have multiple titles
Optional*
First Name
First name of the person. In case if the first name is not available, no
first name or NFN may be used here.
Optional*
Middle name
Middle name (essential part of the name for many nationalities). Eg.
Shakti in “Nivetha Shakti Shantha”. Can have multiple middle names.
Optional*
Name prefix
De, van,van de, von, etc. Example: Derick de Clarke
Optional*
Last Name
Represents the position of the name in a name string.
Can be Given name, Forename, Christian name, Surname, Family
name etc. In case of a company, this field can be used for the
company name.
Optional*
Generation
Identifier
The identifier of generation such as Jnr, Thr, III
Optional*
Suffix
Could be compressed initials such as: Phd, VC, QC
Optional*
General Suffix
Deceased, retired etc.
Optional*
11
S. No.
Element
Description
Requirement
Name Type
It is possible for an individual or entity to have several names.
This is a qualifier to indicate the type of a particular name. Such types
include nick names (“nick”), names under which a party does business
(“dba” a short name for the entity, or a name that is used for public
acquaintance instead of the official business name) etc. The possible
values are:
Optional*

N1= SMFAliasOrOther

N2= indiv

N3= alias

N4= nick

N5= aka

N6= dba

N7= legal

N8= atbirth
B.6.3
Customer ID
Customer ID/Number allotted by the reporting entity. This information
is mandatory if Customer ID/Number is allotted.
(Optional)
Mandatory
B.6.4
Father's
Name
Name of the father. This information is mandatory if valid PAN is not
reported.
Optional
B.6.5
Spouse’s
Name
Name of the spouse, if available
Optional
B.6.6
Gender
Permissible values are:
Validation

M - Male

F - Female

O - Others
B.6.7
PAN
Permanent Account Number issued by Income Tax Department.
This information is mandatory if PAN is required to be collected as per
regulatory guidelines.
(Optional)
Mandatory
B.6.8
Aadhaar
Number
Aadhar number issued by UIDAI
Optional
B.6.9
Identification
Type
Document submitted as proof of identity of the individual. Permissible
values are:
Validation

A - Passport

B - Election Id Card

C - PAN Card

D - ID Card

E - Driving License

G - UIDAI Letter

H - NREGA job card

Z – Others

X – Not Categorised
B.6.10
Identification
Number
Number mentioned in the identification document. This information is
mandatory if PAN or Aadhar number is not reported
(Optional)
Mandatory
B.6.11
Occupation
Type
Permissible values are:
Validation
B.6.12
Occupation

S - Service

B - Business

O – Others

X - Not Categorised
Please specify occupation of the individual.
12
Optional
S. No.
Element
Description
Requirement
B.6.13
Birth Date
This data element identifies the date of birth of the Individual Account
Holder. The data format is DD/MM/YYYY.
This information is mandatory if valid PAN is not reported.
(Optional)
Mandatory
B.6.14
Nationality
2 character Country Code (ISO 3166)
Validation
B.6.15
Country of
Residence as
per tax laws
This data element describes the tax residence country code(s) for the
individual being reported upon and must be present in all data records.
The Country Code as per ISO 3166 has to be mentioned. If the
individual is certified or treated as tax resident in more than one
jurisdiction then this element may be repeated.
Validation
B.6.16
Place of Birth
Place of Birth.
(Optional)
Mandatory
City Sub entity
of birth
City Sub entity of birth
Optional*
Country of
Birth
This data element describes the Country of birth for the individual. The
Country Code as per ISO 3166 has to be mentioned.
This information is mandatory for foreign national or non-resident.
(Optional)
Mandatory
Former
Country Name
Former name of the country
Optional*
B.6.18
Foreign Tax
Identification
Number (TIN)
allotted by tax
resident
country
This data element identifies the Tax Identification Number (TIN) used
by the residence country of the reported account holder to identify the
Individual Account Holder. In case if there is no TIN, provide functional
equivalent.
This information is mandatory for foreign national or non-resident.
(Optional)
Mandatory
B.6.19
TIN Issuing
Country
This attribute identifies the jurisdiction that issued the TIN. The
Country Code as per ISO 3166 has to be mentioned. If Country Code
is not available, use XX.
This information is mandatory for foreign national or non-resident in
certain situations.
(Optional)
Mandatory
B.6.20
Address Type
Indicates the type of the address. Permissible values are:
Validation
B.6.17
B.6.21
Address

1- Residential Or Business

2 - Residential

3 - Business

4 – Registered Office

5 – Unspecified
Complete address consisting of house number, building name, street,
locality, city, state etc.
Validation
Street
Optional*
Building
Identifier
Optional*
Suite Identifier
Optional*
Floor Identifier
Optional*
District Name
Optional*
POB
Optional*
B.6.22
City / Town
Name of City, Town or Village
Validation
B.6.23
Postal Code
In case of India, the 6 digit Pin code as per India Posts has to be
mentioned. In case of countries outside India, respective code may be
used. If Pin code is not available, use XXXXXX.
Validation
13
S. No.
Element
Description
Requirement
B.6.24
State Code
The two digit state code has to be mentioned as per Indian Motor
Vehicle Act 1988. In case of countries outside India, or if state code is
not available, use XX.
Validation
B.6.25
Country Code
The Country Code as per ISO 3166 has to be mentioned. Use IN for
India. If Country Code is not available, use XX
Validation
B.6.26
Mobile/Teleph
one Number
Primary Telephone (STD Code-Telephone number) or mobile number
(Please do not add “0” before the number)
Optional
B.6.27
Other Contact
Number
Other Telephone (STD Code-Telephone number) or mobile number
(Please do not add “0” before the number)
Optional
B.6.28
Remarks
Any additional information related to controlling person
Optional
14